IR35 and Off Payroll Legislation update

Last week the Chancellor announced in his Budget that IR35 Off Payroll Legislation to the private sector in 2020. Since that time we have been considering the announcement and have come to the following conclusion:

We continue to be supportive of the government’s attempts to ensure everyone pays the appropriate amount of tax, and we applaud the Government for giving businesses the extra time necessary to ensure they implement the changes effectively.

SThree plc, and its specialist brand Progressive, urged the Government not to introduce the legislation in April 2019, as was widely expected, and we are extremely glad they took the decision to delay. Businesses now need to use this time wisely to ensure they are properly educated and prepared for the change.

Progressive has been talking to customers and contractors on this topic for the last few months, sharing the experience in the public sector and highlighting how we can assist our private sector clients through this changing landscape.  We’ll continue to work with our customers in the private sector and use the extra time available to help them prepare for the anticipated changes in 2020.


Gary Elden, CEO of SThree plc, which owns Progressive said: “I would like to congratulate the HMRC on their decision not to introduce the IR35 Off Payroll Legislation to the private sector in April 2019. While we are supportive of all efforts to ensure people pay the appropriate amount of tax, to have introduced this legislation just after the deadline for the UK to withdraw from the EU, would have put an additional bureaucratic burden on businesses already battling with considerable uncertainty.”

The new timescales give businesses a longer period to properly assess their flexible workforce and Progressive have a huge part to play in that. The value for our customers of working with a large, compliant PLC has never been greater. SThree has the skills, knowledge and experience of helping clients through the public sector implementation and we are looking forward to using this to benefit our private sector clients.


If you would like to know more about how SThree plc and our specialist recruitment brands can help you to navigate the murky waters of the IR35 Off Payroll Legislation and plot a smooth course through the private sector implementation, contact Kellie or Charlie.

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