IR35


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IR35

in tax law, the convenient name for rules established under the Intermediaries legislation. The aim of the legislation was to eliminate the avoidance of tax and National Insurance Contributions through the use of intermediaries, such as service companies or partnerships, where an individual worker would otherwise be liable.
References in periodicals archive ?
We expected to take a hit in the temporary market due to the IR35 reforms, but our results show that we were able to mitigate its impact on clients, and we have subsequently exceeded our targets for the year.
A Trust spokeswoman added: "The shortage of middle grade doctors and our reliance on locums has been exacerbated by the HMRC IR35 rules around who can be classed as being self-employed and the tax and national insurance consequences of this on individuals.
But the crackdown on HMRC's IR35 legislation means it is now the responsibility of all public bodies, including the BBC, to get people's employment status correct for the purposes of tax collection, placing any liabilities for tax and NI contributions with them.
In brief, from 6 April the responsibility for making IR35 status decisions transferred from the individual operating as self-employed or through a personal service company (PSC), to the public sector body that they work for.
Changes to IR35 rules From April 6, new IR35 rules will affect offpayroll workers providing services through an intermediary in the public sector.
Jennifer Henderson, head of global mobility and employment tax at the BBC, told the tribunal that by autumn last year the number of inquiries into IR35 cases had risen to 100.
Finally, the Chancellor confirmed that IR35 will, once again, be reviewed.
Likely topics include financial planning, inheritance tax, IR35 advice, setting up in business on your own, raising finance, taxefficient business structures, and advice on switching accountant.
Compare and contrast such an amateurish attitude with that exhibited towards contractors since the introduction of IR35 in 1997 where how people are treated for tax purposes depends on whether they are "distant employees".
FPS is also working to educate and advise recruiters on all current industry issues affecting the contracting market and how best to handle upcoming changes and regulations; including, amongst others, IR35, pensions auto-enrolment and Agency Workers Regulations.
Companies must be aware of rules such as the Intermediaries Legislation known as IR35, which was designed to crack down on people saving on tax by setting up as limited companies while essentially working as employees.
In May, the new Coalition Government made a commitment to review IR35 as a priority only days after taking power declaring it will '.