Businesses are not impressed with HMRC’s latest proposals to shift the responsibility of IR35 enforcement onto employers in the public sector.
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.
Just how fair are HMRC’s latest public sector IR35 proposals?
HMRC’s consultation on off-payroll working in the public sector was issued at the end of May 2016. Here we consider the impact on the industry should the proposals be adopted in their current state.
Public sector contractors face fresh IR35 scrutiny from April 2017
The standout measure announced during Budget 2016 was placing the burden of enforcing IR35 onto public sector bodies themselves and/or recruiters. Here we look at how this proposed change will affect limited company contractors from April 2017 onwards.
Will HMRC force clients to determine the IR35 status of contractors?
Following the Summer Budget, HMRC has released a discussion document on ‘how to make IR35 more effective in protecting the Exchequer’. Will end-clients now be compelled to determine the IR35 status of contractors they engage?
IR35 – proving you have the right to provide a substitute
An IR35 expert answers our questions on the ‘Right of Substitution’ – considered to be the most important test in determining employment status. It is also a topic which generates more questions from contractors than almost any other.
So, how much do IR35 investigations raise for HMRC?
Responding to a parliamentary written question, the Treasury has revealed that the direct tax yield from IR35 investigations remains negligible, but is there more to the figures than meets the eye?
HMRC disappoints with its ‘PR plan’ for IR35
HMRC has responded to recommendations made by the IR35 Forum on how IR35 can be better administered in the future. Containing little of real substance, industry reaction has been underwhelming.
IR35 Business Entity Tests to be scrapped
HMRC has announced its decision to withdraw the much-criticised IR35 Business Entity Tests (BETs) from April 2015, having established that they have been ‘used very little’, and haven’t fulfilled their intended purpose.
Public sector contractors seek IR35 reviews following NHS report
A specialist accountancy firm has reported a surge in demand for IR35 contract reviews by public sector clients following news that dozens of NHS ‘off payroll’ executives could be investigated for failing to provide tax assurances to their departments.
New HMRC IR35 guide – are things any clearer?
Following publication of HMRC’s new IR35 guide, we asked an industry expert how the guidance compares to the old FAQs, and how specific IR35 issues have been addressed.
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