TAXING CHANGES

摘要

The building sector has traditionally relied on alternative employment models, such as agency workers, the self-employed and personal service companies (PSC). These allow flexibility while enabling the individual to benefit from advantageous tax treatment as a self-employed consultant. IR35, when it was introduced back in 2000, was intended to wipe out the tax benefit for those who were working in a form of disguised employment. Contractors who fell inside IR35 were required to withhold their own tax and pay employer's NIC. This rendered any advantage negligible, particularly given that such contractors were excluded from the employee benefits and protections afforded to regular employees.