Today (7/1/20) at 14.30, Sajid Javid, Chancellor of the Exchequer will be asked three questions relating to IR35 from Conservative MPs, with the belief that a Treasury announcement regarding the legislation will be made after.
He is set to answer these questions in the House of Commons. The three questions are:
- Peter Gibson (Conservative Darlington MP): What plans he has to undertake a review of IR35 Tax Regulations to help support self-employed entrepreneurs in Darlington constituency
- Henry Smith (Crawley Conservative MP): Whether he has plans to undertake a review of HMRC’s IR35 Tax Regulations
- Greg Smith (Conservative Buckingham MP): What the timeframe is for the review of HMRC’s IR35 Tax Regulations.
The Recruitment and Employment Confederation (REC) wishes the Government to delay the implementation of IR35 until 2021.
This delay would:
- Allow the Government time to regulate umbrella companies, something which it has long promised. Without this regulation, it risks non-compliant umbrellas prospering, facilitated by IR35 changes
- Businesses’ awareness of the changes is low, and the Government gave assurances in 2018 that companies would have time to implement the final legislation. It now looks like the legislation won’t be finalised until March 2020, which leaves only a few weeks for firms to get to grips with any final changes before implementation
- Rushed, last minute legislation is hard to implement properly as seen by the loan charge implementation and public sector reform of IR35, and it is vital to get good legislation and compliance right from the outset.
- Confidence in the economy among business leaders is at a low point. In addition to Brexit, businesses also have to adjust to four other legislative changes which will come into effect this April – Key Information Document, repeal of Swedish Derogation clauses, written statement and holiday pay changes