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UK – REC confirms IR35 review to look at just implementation, seeks to delay legislation

08 January 2020

While the UK government announced Tuesday that it is launching another review into the off-payroll working rules, also known as IR35, the Recruitment and Employment Confederation said Wednesday that it confirmed the review will be limited to how IR35 will be implemented. The REC said the finding underscores the need to delay the legislation.

“So it is disappointing that the review won’t be looking into the legislation itself, as we had hoped, and will limit engagement from outside of London,” Tom Hadley, director of policy and campaigns at the REC, said in a statement. “This makes delaying implementation, and the need to regulate umbrella bodies, even more urgent.”

As it stands, IR35 will have unintended consequences, according to the REC. The expansion of the IR35 to the private sector is set for 6 April with the final legislation expected in the spring budget on 11 March. The government’s review will conclude by mid-February.

“Businesses may have just weeks to make sweeping reforms to their payroll at what is already an extraordinarily difficult time as Brexit uncertainty and skills shortages take their toll on employer confidence,” Hadley said.

Delaying the legislation to 2021 would allow the government to include a full impact assessment of the IR35 changes already in place in the public sector and it would allow the government to regulate umbrella companies, according to the REC.