Business Guides - IR35

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.

Do composite companies help beat IR35?

Since IR35 was announced various inventive means and schemes have been put forward to circumvent the new legislation. But do they really work?

Does the right of substitution defeat IR35?

There has been a lot of debate recently over substitution clauses in agency contracts, and whether they do indeed defeat IR35. In this article I will sum up the Revenue's thinking toward the subject, quoting directly from their employment status manuals.

IR35: The Obligation of Personal Service: what it is and why it matters

Since the IR35 legislation was enacted in 2000, the finer details of employment law have become a subject of keen interest to many contractors. This article discusses the feature of employment contracts known as the Obligation of Personal Service.

Mutuality of Obligation

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

Control

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.

IR35 Links

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

                             

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