The IR35 legislation was introduced in April 2000 to prevent workers from using an intermediary, such as a limit ed company, to avoid paying employment tax.
Working in this capacity is sometimes referred to as "disguised employment" and enables individuals to avoid tax and national insurance contributions they would have paid if simply employed, which HMRC intend to recover.
There are today two sets of rules depending on the specifics of the engagement, most notably the end client’s company size and operating sector. This means that the majority of contractors now have their status determined by their client (with the exception of those engaged to a 'small' client in the private sector).
We’ve been defending contractors against IR35 for over 20 years. In that time, we’ve successfully defended over 1,600 IR35 enquiries and completed over 150,000 assessments for IR35 status (50,000 of which we have away for free with our insurance policies!) becoming the most trusted opinion on IR35.
Our Head of Tax, Nigel Nordone, has personally represented hundreds of clients under IR35 enquiry over the past two decades, and as a former HMRC Inspector of Taxes specialising in IR35, tax investigations, status, PAYE and employer compliance, Nigel has first-hand experience in HMRC’s handling of enquiries.
Here you will find the latest news and advice, resources, and services to help you understand the IR35 rules and stay compliant with the IR35 legislation, whether working inside or outside IR35.
If you’re a limited company contractor, you need to have your employment status assessed for tax purposes (IR35 status) and pay the relevant tax according to this status.
There are different rules in place dependent on if you’re working for a small business in the private sector, a medium-large business in the private sector, or a public sector body.
Congratulations! You still have complete control over your IR35 status as contractors have done since it was introduced in 2000. It does mean there’s more to do though.
You’ll need to assess your own IR35 status and make sure you’re paying the right tax. There’s plenty of guidance available to you and we can help you with the assessment, whilst your accountant should be able to take care of the taxes. Remember, your status and therefore tax payments can be different for each contract and even change within the same contract.
Your end client is responsible for assessing your status and if you’re considered inside IR35, the company which directly pays your fee has to deduct the tax before paying you (much like an employee). Welcome to the off-payroll working rules.
You don’t have a lot of control over this but remember these key things; your end client is obligated to give you written confirmation of your status (a Status Determination Statement) and you have the right to dispute the result.
An assessment of your working practices for IR35 status.
Reduce the impact of an IR35 enquiry with comprehensive IR35 insurance
A detailed review of your IR35 status in both written terms and working practices.
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