Less than a week after the chancellor confirmed he was pressing ahead with the reforms, the Treasury last night announced that the Off-Payroll reforms – due to come into force on 5th April 2021 – will now be delayed until April 2021.

This means that contractors retain the right to determine their own status and that the liability will not transfer to the end client.

Alan Broome, MD at Acumenica said this morning “This is undoubtedly a big win for contractors but it is only a deferral. Make no mistake, the rules will come into force next year. We, the contractor community, have been given a year’s reprieve and it’s most important that we spend it wisely. Contractors need to engage immediately with their clients and get their working practices in order. All the measures we’ve been recommending for months, which were really essential good business practice anyway, now need to be put in place. We’ve seen from many of the big FS companies’ knee jerk blanket bans over the past few months that they’re not going to help much. Contractors, this time, need to look after themselves. This is what we mean when we say that the time should be spent wisely.”

It may be too late for many contractors, who have already been forced down the PAYE/Staff route, but it would appear that there may be a way back for contractors who chose the umbrella route. And for those who are still operating through a PSC it’s likely to be business as usual. It remains to be seen though, what the end-clients will do. It’s still entirely at their option to refuse to engage with PSCs and they may not fancy the admin task of reversing the decision but we remain hopeful. Maybe a blanket ban will precipitate a blanket u-turn.

It’s also business as usual at Acumenica. We remain committed to Britain’s contracting workforce and we welcome enquiries from clients old and new. For more information and assistance please email info@acumenica.co.uk or call 03330 166 559. Please also keep an eye on our website as we will be providing an analysis of how this will affect our clients, and the wider contracting community in the coming days and weeks.