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?
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 2021
The 'off-payroll' addition to the existing IR35 rules was rolled out across the publc sector in April 2017. The rules will also hit private sector businesses from April 2021. The planned rollout was deferred from April 2020 due to the COVID-19 crisis. These new rules mean that clients (not contractors themselves) will be responsible for determining the employment status of contractors.
Here are some of our most-read articles:
- April 2021 Private sector IR35 reform - what happens now?
- What clients can do to prepare in advance of April 2021.
- 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.
Essential IR35 Newsletter
- Make sure you subscribe to our newsletter for the very latest on the IR35 private sector changes - subscribe here.
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.
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.