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.
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
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.
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?
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.
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.
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.