Guide to IR35
The IR35 tax was put on the statute books in 1999 to stop what the Government called disguised employees, i.e. those who leave a permanent job on a Friday at a company and start again as a contractor on the Monday doing the same job. It taxes the contractor as if he, or she, was an employee. They are considered employees only for taxation purposes and get no employee benefits.
It is crucial that contractors know whether they are caught by IR35 or not. If they are inside IR35 but using a limited company, they could be in a lot of trouble. They could be the subject of an IR35 investigation by HMRC that could last years. They could be liable for back tax in the tens of thousands.
An explanation of what the IR35 tax is and why it was levied.
The Three Primary and Nine Secondary IR35 Factors
Contractors should differentiate themselves from employees as much as possible. This applies to both their contracts and their working practices. Contractors should read about the primary and secondary factors that would take them outside IR35.
Staying Outside IR35
There have been a number of high court cases over IR35. There have been many cases at the Special Commissioners and at the General Commissioners which have ruled on IR35 and whether contractors are outside or inside IR35.
We have gleaned information and tips from many of these cases in order to put together the following articles which tell you how to stay outside IR35.
IR35 – 18 ways to stay outside it
Ten Clauses that should take you outside IR35
You could be caught for IR35 tax
How Contractors can escape IR35 by avoiding Deemed Employment
IR35 investigations take years and can leave contractors owing the taxman tens of thousands of pounds. We let you know what happens when the taxman comes knocking.
What happens when they come after you for IR35 tax
When HMRC come calling over IR35 here‘s what they will ask
Why the Government will keep IR35
The Professional Contractors Group (now called IPSE) were set up to abolish IR35. They never managed it. Here is why we believe that the Government will keep IR35.
IR35 – the 2 Billion a year Moneyspinner for the Government
Complete abolition of IR35 a non starter say top Umbrella Company