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IR35 set for ‘soft landing’ in private sector

Extending the off-payroll working rules to the private sector in April look set to go ahead, after the Chancellor hinted at a soft-landing period.

Chancellor Rishi Sunak reportedly told a conference last weekend that HMRC would not be "at all heavy handed in the first year".

Not only does that indicate the changes are due to go ahead as planned from 6 April, it suggests a light-touch approach will be adopted in 2020/21.

A report is due to be published imminently to address any concerns from those affected by the rules and how they will be implemented.

But campaigners have lashed out and urged the Chancellor to halt the review at the last minute and "fundamentally reassess" the legislation.

The Association of Independent Professionals and the Self-Employed (IPSE) reiterated calls to delay the rollout.

Andy Chamberlain, deputy director of policy at IPSE, said:

"The fact HMRC are apparently planning to give the changes a soft landing suggests they are starting to understand just how damaging and disruptive they will be for business and contractors alike.

"This is nowhere near good enough.

"Taking a light touch early on will not mitigate the immense damage the changes are going to do to contractors, their clients and the economy.

"If the new Chancellor really wants to improve the situation, he must halt and fundamentally reassess this disastrous legislation."

Talk to us about the off-payroll working rules.