Businesses are not impressed with HMRC’s latest proposals to shift the responsibility of IR35 enforcement onto employers in the public sector.
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
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.
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.
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?
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.
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 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.
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.
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.
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.