IR35 legislation

IR35: Are You In the Know or Out of the Loop?

IR35: Are You In the Know or Out of the Loop?

IR35 is a piece of legislation that was introduced more than a decade ago but it still manages to confuse a number of people. British chancellor George Osborne mentioned IR35 in his December statement saying he believed it to be fit for propose but in need of some slight adjustments; so expect IR35 to big news in 2013. Since 1999/2000 IR35 has been in place to prevent individuals from falsely claiming to be independent contractors for tax benefits. Prior to this legislation it would have been possible for an individual to be employed by a company, then leave and set themselves up as a contractor only to return to the same company and do the same job but without paying regular levels of income tax. To combat scenarios like this, IR35 sets out a number of guidelines to determine whether some... »