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.
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.
The 'off-payroll' addition to the existing IR35 rules was rolled out across the public sector in April 2017, and the private sector in April 2021.
[Oct 17th 2022] The April 2023 Off-Payroll repeal will no longer happen.
The 'Off Payroll' rules mean that clients (not contractors) are responsible for determining the employment status of contractors. Prior to this, workers themselves were responsible for this determination.
Get started with these IR35 guides
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.