MPs have failed to secure a further delay to the roll-out date of the upcoming reforms to the IR35 tax rules, governing contractors, which stakeholders have described as "disappointing".
The changes - which the government already deferred to April 2021 in response to coronavirus - will make large and medium-size private sector companies responsible for deciding how contractors they use are taxed. Under current legislation, contractors themselves are responsible for deciding if they should be taxed at source, in the same way as salaried employees (inside IR35), or as off-payroll workers (outside IR35). However, the government has said this system is open to abuse.
