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Home IR35 – What Is It And How Does It Affect You?

IR35 – What Is It And How Does It Affect You?

Whatever your involvement in contracting, seasoned pro or just starting out, you will probably have heard quite a lot about IR35. Even some long-time contractors though have little understanding of what it actually is, how it impacts them and how, with care, they can establish working patterns and contractual relationships that keep them outside of its scope. The lack of understanding in the contracting industry causes confusion, stress and higher than necessary bills for many, with contractors being drawn into expensive umbrellas or accountancy packages on the basis of meaningless claims such as “IR35 Compliant”. This series of guides will take you through what the rules actually say and what that means for you.

Concerns about the extension of IR35 changes in the private sector have prompted MPs to table a parliamentary Early Day Motion (EDM) opposing the new rules, which are due to take effect in April of next year. The IR35 changes, known as the ‘Off-Payroll’ rules, were introduced in the public...
Melvyn Stride has been promoted to Leader of the House of Commons, following Andrea Leadsom’s resignation yesterday. Stride was previously Financial Secretary to the Treasury, the third most senior ministerial position at the Treasury, and the Minister in charge of HMRC. He will be replaced by Jesse Norman, who joins...
HMRC clarifies position on the Off-Payroll contract "blanket rulings" HMRC has told their IR35 forum that so-called “blanket” IR35 assessments by clients are acceptable under the Off-Payroll rules, provided the client reviews at least one contract. “Blanket” assessment refers to applying the same IR35 decision to multiple limited contactors, if they...
HMRC online IR35 checker remains inaccurate As most contractors will know, determining one’s IR35 status can be a tricky process.  When the Government recently moved the burden of IR35 assessments to the HR departments of public sector bodies and away from their contractors through the introduction of the Off-Payroll rules,...
A Professional body has urged caution over Off Payroll rollout towards the private sector Responding to last week’s Budget announcement, The Chartered Institute of Taxation’s (CIOT) main criticism of Philip Hammond’s Red Book was the number of surprise measures that were included with seemingly little or no consultation, with some...
Off Payroll in the Private Sector – Will It Affect Me? Monday’s Budget confirmed that the new Off Payroll IR35 rules will soon be rolled-out to the private sector – but what exactly are the Off Payroll rules and who will be affected? Background The government introduced IR35 in April 2000 to...
HMRC accused of “witch hunt” following leaked correspondence HMRC has been accused of using the Off-Payroll IR35 rules to engage in a witch hunt against contractors, following the leak of a letter currently being sent out to public sector bodies (PSBs) by the Revenue. The letter, obtained by ContractorCalculator.com, asks PSBs...
Question marks grow over accuracy of HMRC’s IR35 status service A recent employment tribunal decision has highlighted critical inaccuracies in HMRC’s online IR35 status checker, CEST, allowing a contractor who was taxed wrongly as an employee to claim circa £9,500 in overcharged tax and National Insurance. Tony Elbourn worked as a...
IR35 reform unlikely to be extended to private sector at Budget Consensus is growing that last year's changes to the IR35 rules, which allow public sector end-clients to deduct PAYE income tax and National Insurance at source from contractors working through their own limited companies, are unlikely to be extended...
HMRC have held a consultation on the IR35 rulings around off-payroll workers within the private sector. Recently rolled out to the public sector last year, the sector faced shambles for workers that lent their services to public sector clients through their personal service companies, with many blanket-ruled inside of...