HMRC has been forced to abandon a three-year tax investigation into an engineering contractor’s tax affairs. The taxman pursued the worker for £100,000 despite its CEST employment status tool showing that the contracts fell outside IR35.
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.
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One of the most important employment status factors is the mutuality of obligation. Here we explain what ‘MOO’ means in the context of the IR35 legislation.
The IR35 reforms (off payroll rules) are set to be repealed in April 2023. We asked IR35 expert Dave Chaplin how the legislative process works, and what contractors and clients should do in advance.
With the IR35 reforms (Off Payroll Rules) to be repealed from 6th April 2023, the surprise and welcome news has raised a number of important questions for contractors.
In his ‘mini Budget’, Chancellor Kwasi Kwarteng announced that the Off Payroll working rules will be abolished from April 2023.
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.
With the application of the off-payroll rules to the private sector since 6th April 2021, is working as a sole trader a smart way to ensure your contract work falls outside IR35?
Recently introduced IR35 reform in the private sector presented a host of challenges to contractors, along with the businesses that place and engage them. Here we have included some of the most common FAQs we get asked about these changes, which were rolled out on 6th April 2021.
To ensure that any contracts you undertake are not deemed inside IR35, you need to be able to demonstrate that you are not a disguised employee, but truly working in the manner of a small business owner. In other words, can you show that you are ‘in business on your own account’?
There is a huge amount of information available about IR35 and how to protect yourself. But what happens if you are actually selected for an investigation in the post-IR35 reform world? How does an IR35 enquiry work now and what should you expect if HMRC contacts you regarding IR35 compliance?