Tax & Legal :: IR35

IR35 S660 Legal Guides General Matters



What is IR35?
Essentially, IR35 will affect all contractors who do not meet the Inland Revenue's definition of 'self employment'. Those contractors who fall under the IR35 rules will be liable to Schedule E taxation and National Insurance (N.I), following deductions for expenses. Income will be in the form of a 'deemed payment', following these deductions.

How will I know if I am caught by IR35?
Explanation of IR35 legislation, introduced in April 2000, which affects anyone who is working via an intermediary.

Freelance UK Guide to IR35
Freelance UK's guide to IR35 and how it can affect you as a freelancer.

IR35 Case Analysis
Visit our collection of articles relating to previous IR35 cases.

Factors Determining Employment Status

The articles below will help you understand the factors as to whether IR35 may apply to you or not depending on a number of issues.

Previous status ruling
An area often overlooked is that the Inland Revenue may have already made a Status ruling at a previous visit.

As most people are now aware a Contract can be written, oral or implied. The Contract is rightly considered to be very important as it sets out the rights and obligations agreed between the Contractor and the Client.

Proper checks
There are many checks to be made to arrive at the correct status of an individual. It is not sufficient to "pick one topic" like substitution or control and base all your arguments on this one point.

Mutuality of Obligation
Mutuality of Obligation is now a common phrase when dealing with Status disputes.

This is one of the main pointers used in disputes regarding employment and self-employment.

Substitution and Exclusivity
This is probably the main point now discussed amongst Contractors, as many incorrectly believe it is the only point needed in a Contract to prove self-employment.

Financial Risk and Payment
Financial risk and payment are one of the main differences between employment and self-employment.

This is considered in many cases and can sometimes surprise you with the results.

Part and Parcel of the Organisation
Part and Parcel of the Organisation considers whether the Contractor has now become integrated into the Client Company.

Intention of the Parties
It is often stated that the intentions of the parties is important and there are a couple of questions on the Inland Revenue questionnaire relating to this point

IR35 Links
Please find our collection of useful IR35 links here...

Further Reading
Some more articles to help your understanding of IR35.

IR35 Timeline - A history of the legislation
On 9th March 1999, the Inland Revenue issued a press release detailing how "changes are to be introduced to counter avoidance in the area of personal service provision". A brief history of the legislation.

'More than just IR35 to fear at Autumn Budget'
Other anti-freelance measures, affecting take-home pay, regarded as just as likely.
Oct 30, 2017

Freelance company actor faces £150,000 tax bill
BBC Hustle star says he's the victim of a cash grab -- over his employment status.
Oct 18, 2017

Don't extend off-payroll rules, Hammond urged
Chancellor warned off private sector IR35 reform, as it'll leave HMRC short-changed.
Sep 26, 2017

Why private sector IR35 reform isn't inevitable
Bedding in, not rolling out, is what HMRC's latest IR35 language speaks to.
Sep 6, 2017

Private sector IR35 reform: waiting for the other shoe to drop
Only a matter of time until the off-payroll rules are rolled out to cover all freelance companies.
Sep 5, 2017

Consultant admits IR35 legal challenge now unlikely
Campaigner concedes that the courts might not be how IR35 gets changed.
Aug 17, 2017

Bid to battle IR35 smashes funding target
Freelancer hoping to take on the off-payroll rules raises over £11,000 in just three weeks.
Jul 10, 2017

Freelancers' Questions: What if an outside IR35 role is found inside IR35?
Who carries the can when HMRC deems a non-caught public post to be caught.
Jul 6, 2017

IR35 challenge campaign hits £10.5k target, almost
Consultant on the cusp of enough funds to wave through a legal attack on the off-payroll rules.
Jul 3, 2017

IR35 challenger to draw up complaints list
Where the off-payroll rules should be fought, and why, to be itemised and assessed.
Jun 29, 2017

Freelancers' Questions: Am I safe from IR35 when moonlighting?
Legal expert cautions a broadcast engineer that his client sounds more like his employer.
Apr 12, 2017

The now in force IR35 changes -- Top 10 myths
Separating fact from fiction about what's now here -- IR35 reform in the public sector.
Apr 7, 2017

What's still wrong with the IR35 digital tool
Eight areas where the ESS falls down and needs fixing.
Mar 30, 2017

'Reasonable care' clause put into new IR35 legislation
Final set of April 6th rules outlaws clients from making blanket IR35 assessments.
Mar 23, 2017

New IR35 tool lets workers test their status
Freelancers who are 'Ltd' among those now able to check their status for tax.
Mar 7, 2017

What to do if you're declared inside IR35 on April 6th
Five steps that freelancers who want to fight will take if clients rule against them.
Feb 22, 2017

IR35 expert backs BBC newsreader ruling
Tribunal's attention to 'what actually happened' impresses top status adviser.
Oct 13, 2016

BBC presenters probed over IR35
Taxman takes on two newsreaders, to try to cast the die against droves of other PSCs.
Oct 11, 2016

Government approves IR35 changes from April
Treasury lets on that Budget 2016's rewrite of IR35 in the public sector is going ahead.
Aug 5, 2016

Private sector quizzed on public sector IR35 plan
Testing the water? Taxman asks companies about his IR35 proposals for organisations.
Jul 14, 2016

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