The deadline for responding to HMRC’s consultation document on extending the off-payroll rules to the private sector has expired. So, how did the contracting industry’s biggest players respond?
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.
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.
A consultation on how the private sector changes will be rolled out was published on 5th March 2019 - read our summary here.
- April 2020 Private sector IR35 reform - what happens now?
- What clients can do to prepare in advance of April 2020.
- What contractors can do to mitigate against the IR35 changes
Get started with our IR35 guides
- Start off with our overview of IR35 for a concise guide to the legislation.
- 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.
MOO – HMRC ignores crucial factor in IR35 test tool
HMRC has provoked the contracting community further by admitting that its online employment status tool (CEST) does not account for the Mutuality of Obligation (MOO), which is often cited as a key factor in IR35 case law.
IR35 private sector extension – consultation launched
The Government has launched its long-awaited consultation into ‘off-payroll working’ (IR35) in the private sector.
Contractor beats HMRC in IR35 case – for the second time
A contractor won a key IR35 case against HMRC this week, which casts further doubt on the taxman’s ability to accurately recognise IR35 status.
IR35 private sector consultation expected “in the coming months”
Although the Chancellor didn’t mention IR35 in his Spring Statement speech, the Government’s written statement published shortly after suggests that an extension of the public sector off-payroll rules to the private sector is still on the cards.
IR35 contract template resources for contractors
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.
Is private sector IR35 reform inevitable?
Ever since the Government first announced its intention to introduce ‘off payroll’ rules within public sector, the inevitable question has been asked – will these changes be extended to the private sector?
FT, Times report on IR35 ‘off payroll’ extension rumours
Reports in The Times and FT over the past few days suggest that the Treasury may be considering extending the ‘off-payroll’ IR35 rules to the private sector.
Why have the public sector IR35 reforms failed so badly?
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.
Calculate how IR35 affects net take home pay
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 effect on contractors earning between £250 and £550 per day.
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