IR35: Get back on track with off-payroll working rules

摘要

What is IR35? IR35 is a piece of complex tax legislation that was introduced in 2000 to target a tax loophole that HMRC considered may result in an underpayment of tax contributions. The legislation was designed to make sure that an individual who works like an employee, but through their own limited company, pays broadly the same Income Tax and National Insurance contributions as those who are employed directly. When will any proposed changes come into effect? When IR35 was introduced in 2000 the onus was placed on the individual to assess their own tax status, but HMRC has been introducing changes to the legislation during the past few years. In April 2017 businesses operating within the public sector saw the burden shift to them to assess the 'employment status' of an individual for tax purposes. Thus, if a public sector business assessed an individual who claimed to be self-employed as falling within IR35 they were required to notify the individual and confirm that deductions would be made for Income Tax and National Insurance contributions.