U.K. Government Postpones Implementation of Contractor Rules

The U.K. Parliament voted Tuesday to amend its finance bill to delay the implementation of new rules governing the employment status of contractors.

The “off-payroll” rules, known as IR35, aim to ensure that contract workers pay about the same in tax and social security contributions as regular company employees. The rules first applied to public sector employers in 2017, and are being expanded to cover private-sector employers starting April 6, 2021.

• The rules had originally been scheduled to take effect in April 2020 but the government said March 17 that it would postpone implementation because of the pandemic. Lawmakers on Tuesday voted unanimously in favor of the amendment.
• After its second reading on April 27, the Finance Bill was sent to a Public Bill Committee, which will scrutinize it line by line. The first sitting of the Public Bill Committee will be announced later; the Committee is scheduled to report by June 25.