With IR35 reforms being applied to private sector organisations after April 2020, here we look at ways clients/engagers can prepare their businesses in advance of the implementation date.
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
- IR35 off-payroll changes - our essential FAQs
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.
The key factors which determine your IR35 status
The main factors used to establish whether or not an individual’s contract is caught by IR35 – the most important being Control, Substitution and Mutuality of Obligation. How to ensure that you’re not caught.
IR35 – are you in business on your own account?
To ensure that any contracts you undertake are not caught by 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’?
Does the length of a contract determine IR35 status?
There is a common misconception that contract duration automatically has a bearing on IR35 status. Here, Martyn Valentine looks at why other factors are more likely to be significant than contract length in determining employment status.
Why a right of substitution is vital in determining IR35 status
Although a combination of factors will determine whether or not a contractor is caught by IR35, some factors carry more weight than others. Here, Martyn Valentine looks at the vital role the right to substitution plays in determining IR35 status.
Budget 2018 – IR35 ‘off payroll’ reform to hit private sector from April 2020
The next Budget will be delivered on Monday 29th October. The main focus of the contracting community, of course, will be on whether or not the ‘off payroll’ IR35 rules will be extended to the private sector
‘Unpredictable’ HMRC go after ITV star in latest IR35 probe
Despite a catalogue of recent errors, HMRC has now launched an IR35 investigation into the affairs of ITV presenter Eamonn Holmes. Who will they target next?
Employment rights victory over HMRC by ‘inside IR35’ contractor
A contractor has won employment rights claim against HMRC, having been placed ‘inside IR35’ and forced onto her recruitment agency’s payroll. She successfully claimed over £4,000 in unpaid holiday pay.
What is IR35? – the impact on contractors
An overview of the Intermediaries Legislation (IR35), specifically how it affects limited company contractors. How to determine your risk of being caught by IR35, and how to protect yourself against a potential HMRC tax investigation.
IR35 private sector consultation ends – a resounding thumbs down from industry
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?
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