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.
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.
Get started with our IR35 guides
- Start off with our overview of IR35 for a concise guide to the legislation.
- April 2020 Private sector IR35 reform - what happens now?
- What clients can do prepare in advance for April 2020.
- 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.
Helped by ‘operational experts’ at HMRC, the Government has set out precisely why the abolition of IR35 would cost the Treasury £550m per year.
A House of Lords Select Committee report has called on HMRC to prove how much IR35 actually raises for the Treasury, and slams the current IR35 guidance as “far from satisfactory”. The PCG has called for a suspension of the legislation altogether.