IR35 tax changes – what you need to know
06 December 2018
The Chancellor announced in the Budget the latest measure to combat what HMRC calls “false self-employment”, aimed at those who supply their services via their own company.
In a fundamental reform businesses who engage such contractors (rather than the individuals) will going forwards bear the risk of PAYE and NICs under IR35. This change is likely to make it harder to engage contractors without a disproportionate compliance cost. The courts have also been weighing in on the distinction between employees, workers and genuine contractors, and the Government has its eye on further reforms. Watch our videos IR35 part 1 and part 2 below to find out what this means for your business and how you can prepare.
New IR35 rules for contractors - businesses face additional tax risks and administrative burdens07 March 2019
HMRC’s latest consultation on off payroll working confirms that the new IR35 rules will be based on the rules that have applied in the public sector since 2017. However, HMRC has proposed a number of changes to those rules which, if implemented, will significantly increase the tax exposure and administrative burden of both private sector and public sector organisations.