Off-payroll Working: Coronavirus

(asked on 14th December 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the IR35 off-payroll working rules on self-employed contractors during the covid-19 outbreak.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 17th December 2020

The off-payroll working rules (commonly known as IR35) have been in place for nearly 20 years and are designed to ensure that individuals working like employees but through their own company pay broadly the same Income Tax and National Insurance contributions (NICs) as those who are employed directly.

These rules only apply to individuals who are working like employees under the current employment status tests, and do not apply to the self-employed.

As part of the support the Government provided for businesses and individuals to deal with the economic impacts of COVID-19, the reform to the off-payroll working rules was delayed for one year, from 6 April 2020 until 6 April 2021.

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