Find out how to recognise tax avoidance schemes aimed at contractors and agency workers. You can get help on the off-payroll working rules (IR35) with webinars and resources from HMRC. You can...

Understanding the Context

IR35 is the United Kingdom 's anti-avoidance tax legislation, the intermediaries legislation contained in Chapter 8 of Income Tax (Earnings and Pensions) Act 2003. The legislation is designed to tax 'disguised' employment at a rate similar to employment. IR35 became law in 2000 via the Finance Act, and is another name for the off-payroll working rules. It affects all contractors who work through a limited company and do not meet HMRC’s definition of self-employment.

Key Insights

The UK’s IR35 regime, also known as the off-payroll working rules, continues to play an important role in how businesses engage contractors operating through personal service companies. Since ... Employment and tax status specialist Rebecca Seeley Harris explains everything you need to know about changes to the off-payroll working (IR35) rules. IR35 is a tax regime designed to prevent disguised employment where an individual provides services to an end user through an intermediary, usually a personal service company (PSC), but would be regarded as an employee for tax purposes if engaged directly. Threshold Changes to UK Off-Payroll Working Rules (IR35): End User and ...

Final Thoughts

“IR35” is shorthand for the UK’s intermediaries legislation (originally introduced in 2000) intended to prevent “disguised employment” — i.e. situations where someone works like an employee but uses an intermediary (often a limited company) to gain a tax advantage.