The Government implemented new ‘off payroll’ measures to enforce IR35 within the public sector from April 2017 onwards. Rather than being a revenue-generating success for HMRC, the implementation of the new rules has been a disaster. Together with expert opinion, we look at what damage has been done as a result of the reforms.
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.
Private sector IR35 changes from April 2020
So-called 'off payroll' changes to the IR35 rules were made to public sector organisations from April 2017, and will also hit private sector businesses from April 2020, following an announcement in Budget 2018. These new rules mean that clients (not contractors themselves) will be responsible for determining the employment status of contractors.
Get started with our IR35 guides
- Start off with our overview of IR35 for a concise guide to the legislation.
- April 2020 Private sector IR35 reform - what happens now?
- What clients can do prepare in advance for April 2020.
- Expert FAQ - Are you 'inside' or 'outside' IR35?
- Try our IR35 tax calculator to find out the financial cost if you are caught.
- Why you should consider taking out IR35 insurance cover.
Although you should expect all contractor-focused professional accountancy firms to be highly IR35-literate, some still like to advertise themselves as ‘IR35 accountants’, which is a misleading term.
If your contract work is caught by IR35, your tax bill will rise considerably. We look at how contract income is treated if you are caught, and use our online IR35 calculator to work out the affect on contractors earning between £250 and £550 per day.
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? How does an IR35 enquiry work and what should you expect if HMRC have lined you up as a target?
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.
With everyone’s attention firmly set on the April 2017 public sector IR35 rule changes, many within the industry have been asking whether this is merely a test run for a much bigger target – private sector contractors
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 15 years, and the status of IR35 in 2014.
HMRC’s long-awaited employment status test has gone live, just over a month before the new public sector IR35 rules take effect.
HMRC has published a series of documents outlining the forthcoming ‘off-payroll’ IR35 rules for contractors working for public sector organisations.
HMRC has revealed that it will be public sector bodies themselves, not recruitment agencies, which will be responsible for operating IR35 from April 2017 onwards. So, how will this impact contractors?