After 9-years of trying, HMRC have been told by the courts, yet again, that they were wrong to claim that Kaye Adams of Atholl House Productions Limited was caught by IR35. An IR35 expert explains more.
The Intermediaries Legislation was introduced in 2000 to tackle 'disguised employment', where an individual uses a limited company to carry out professional services, but works in a manner more like an 'employee'. Your take home pay will be significantly lower if your contracts fall within its scope.
The 'off-payroll' addition to the existing IR35 rules was rolled out across the public sector in April 2017, and the private sector in April 2021.
[Oct 17th 2022] The April 2023 Off-Payroll repeal will no longer happen.
The 'Off Payroll' rules mean that clients (not contractors) are responsible for determining the employment status of contractors. Prior to this, workers themselves were responsible for this determination.
Get started with these IR35 guides
In the Autumn Statement, the government confirmed that it will legislate to fix the ‘IR35 Offset’ issue – to prevent cases of double taxation when HMRC successfully overturns an employment status decision. We asked an IR35 compliance expert to explain what this means in reality.
A tweak to the current off payroll working (IR35) rules – known as the ‘IR35 offset’ could come into force from April 2024. This change would put an end to cases of double taxation when HMRC successfully overturns an ‘outside IR35’ determination.
The Intermediaries Legislation (aka IR35) was first mentioned in a 1999 Inland Revenue press release. Here we look at the key events which have taken place over the past 20 years, and the status of IR35 in 2020.
We caught up with of the UK’s leading IR35 experts following reports that HMRC has increased its compliance activity in recent months – with an apparent focus on how clients have been assessing IR35 status.
A confirmation of arrangements letter from your client can be used to back-up your IR35 position with HMRC should it be challenged, as it confirms how you perform your contract duties in reality.
For a relatively small outlay, a professional contract review service will analyse your contracts to ensure that you comply with IR35 – both in terms of your contract wording, but also the ‘working practices’ you undertake at your client site.
To protect yourself against IR35, you need to be sure that the wording of your contracts (and the way you actually carry out your contract work for the client) show that you are genuinely ‘self employed’. Here we show where you can download a sample contract template.
When the ‘off-payroll’ IR35 rules were extended to the private sector in April 2021, ‘small companies’ were excluded from the legislation. Here we explain how this exclusion works, and answer some frequently asked questions.
The Government has announced a new consultation into a ‘double taxation’ issue which occurs when a client determines the IR35 status of a contractor incorrectly, and both the deemed employer and the contractor may end up paying the same tax twice.