IR35 in 5 quick points
- IR35 determines whether contractors are "disguised employees" or genuinely self employed
- Simply put, IR35 determines your employment status and, in turn, how much tax you pay
- Being 'inside IR35' means a contractor is liable for full PAYE and NIC's
- IR35 status is determined on an assignment by assignment basis, so can change for each new contract
- Being found to be inside IR35 does not mean you cannot work through a limited company
ICS’ IR35 audit has been vital in allowing our contractors to determine their correct status.
We have produced a full guide to the IR35 Legislation, covering all of the frequently asked questions from contractors, as well as details of the new HMRC Business Entity Tests.
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Download our FREE Guide to IR35, or contact us today for a FREE IR35 review |
IR35 rules have not changed since the legislation came into force in 2000, despite the long running calls from contractor groups such as the PCG, who want it to be simplified or abolished due to the complexity and difficulty it causes to contractors and freelancers.
Whilst the government set up the Office for Tax Simplification and subsequently the IR35 Forum to review and propose an alternative system, little progress has been made other than the launch of an IR35 'Business Entity Test' in May 2012.
This test is available through the HMRC website, and gives contractors a good indication of what their position is regarding IR35. The tests scores contractors on a number of questions to give an overall 'risk' score; the details of which are outlined within our FREE IR35 Guide.
With many IR35 cases still being investigated it is important that you as a contractor know your IR35 status. To avoid being caught up in a HMRC investigation, download our IR35 guide or contact us today for a free IR35 review.
Live IR35 news updates can also be found on the ICS blog, or by following any of the previous links.
