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Why IR35?

IR35 relates to legislation and rules intended to apply a PAYE and national insurance contributions (NICs) charge on earnings from a company or partnership which is termed an "intermediary."

It is intended to prevent the lower rates of tax which would otherwise apply from being available to payments which are regarded as "disguised employment".

The Government has made it clear that IR35 will remain an integral part of the taxation system but they will aim to simplify the administration.

If your company is in engaged by a public sector organisation either directly or through an agency you may find that payments to the company are made net of PAYE and NICs. See below - the topic "off payroll working in the public sector".

This treatment was originally expected to extend to many placements in the private sector from April 2020, however, this has been delayed util April 2021. It's important to note that IR35 will still apply to engagements with smaller end clients.

Our guides are designed to provide you with an overview of the IR35 rules and it is essential that you seek our expert advice on your specific circumstances. 

It is vital that you seek our advice on all aspects relating to IR35.

Understanding the rules and how they impact on your business is an area where we have gained considerable expertise. These website guides are designed to provide you with an introduction to IR35. However, given the impact of IR35, it is essential that you seek our advice on your specific circumstances. Do please email us or call, we would be pleased to meet with you to ensure that your planning reflects the very latest approach to IR35 and all its implications.

Our advice will be designed to ensure that your planning is IR35 effective.

An introduction to IR35

For many years, people leaving jobs to become self-employed were advised to instead set up one man companies to provide their services; offering the security of a limited liability company and significant national insurance savings. We offer a brief introduction into IR35.

Who is caught by these rules?

The IR35 rules aim to catch anyone who, by placing an intermediary between himself and his employer, gains some tax (including national insurance contributions) advantage.

How can I avoid it?

There are several ways you can avoid IR35, although they may not be palatable to you or your customers.

The problem with deemed payments

If you have established that some of your work will be caught by IR35, PAYE tax and national insurance will have to be accounted for on a deemed salary payment at 6 April 2020.

IR35 and cessations

In this series of IR35 guides you will be able to consider the impact of IR35 and the effect it has on those workers providing their services through intermediaries.

Personal service companies

The legislation known as IR35 is intended to tackle the avoidance of tax and national insurance contributions through the use of intermediaries such as service companies or partnerships.

Off-payroll working in the public sector

The responsibilities for deciding when IR35 applies have changed for contractors engaged by or for the public sector.

The construction industry

There are special tax rules affecting the construction industry, which are designed to ensure that tax is paid by workers in the sector whether they are employed or self employed.

Interest and tax payments

HMRC charge interest on underpayments of tax, and pays interest (repayment supplement) on overpayments.

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