So the 2020 budget has been published and much to the dismay of contractors working in the private sector, there has been no backtracking, reforms or changes.
The planned changes due to be implemented in April are on track and closer than you think, especially if you haven’t planned for it and were holding off for the budget.
As detailed in the statement straight from the Budget document, point 2.6:
Review of changes to the off-payroll working rules (commonly known as IR35) – At Budget 2018 the government announced that it would reform the off-payroll working rules in the private and third sectors from April 2020. The government has recently concluded a review of the reform, and is making a number of changes to support its smooth and successful implementation. The government believes it is right to address the fundamental unfairness of the non-compliance with the existing rules, and the reform will therefore be legislated in Finance Bill 2020 and implemented on 6 April 2020, as previously announced.
The full document can be read here
Many umbrella payroll companies have been witnessing the increase in service enquiries as well taking on a substantial amount of people moving over from running their own Ltd (PSC) in the lead-up to April. Surprisingly there are still many affected sectors that have been holding out for the budget so at least now they know where they stand and can move on.