Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions he has had with HMRC on the potential merits of introducing a six-month period of grace after April 2020 to ensure the effective implementation of the IR35 reforms; and if he will make a statement.

On 17 March 2020, the Government announced that the reform to the off-payroll working rules that would have applied for people contracting their services to large or medium-sized organisations outside the public sector will be delayed for one year from 6 April 2020 until 6 April 2021.

This is part of additional support for businesses and individuals to deal with the economic impacts of Covid-19.

This announcement is a deferral of the introduction of the reforms, not a cancellation. The Government remains committed to introducing this policy to ensure that people working like employees, but through their own limited company, pay broadly the same tax as individuals who are employed directly.