IR35

What is IR35? IR35 rules explained

Essentially, the IR35 rules will affect all contractors who do not meet the Inland Revenue's definition of 'self employment'.

IR35 is why it pays to have no notice period

MBF’s IR35 win confirms there’s sense in being truly dispensable as a contractor.

What triggers an IR35 investigation?

Experts tell CUK how the taxman decides who to investigate under IR35.

How to handle an IR35 investigation

What contractors can expect from an IR35 investigation: now and in the future.

Why Dragonfly got caught by IR35

And how other IT contractors might avoid the same traps.

How will I know if I am caught by IR35 and what will it cost me?

Introduction to factors determining your employment status and what IR35 will cost you.

IR35 Features

For more on the IR35 review carried out by the Office of Tax Simplification see our dedicated IR35 review section.

How a confirmation letter can help beat IR35

Contractors aren’t the only party interested in a confirmatory letter, but they’re the likeliest – Accountax.

Why many IR35 contract reviews just got more worthless

Not worth the paper it’s printed on if your IR35 review ignores the working reality - Bauer & Cottrell.

With IR35, the actual agreement trumps its written terms

Why it’s even more stupid than before for IT contractors to falsely frame their engagement.

When contracts conflict – the implications under IR35

Upper and lower contracts mustn’t be at odds in case a tax inspector calls.

One clause, even a bunch, still won’t save contractors from IR35

If the reality is different, then the written terms will be disregarded – Brookson.

How contractor business Marlen Ltd beat IR35

‘IR35 win shows the sense in jotting down what makes you a contractor and not an employee.’

IR35 reform spells new guidelines for tax inspectors

Contractor tax experts fear a new approach to IR35 won’t end old habits at HMRC.

IR35 experts size up ‘customer segmentation’ model

For being more than mere opinion, HMRC’s wordy model for new IR35 policy is being welcomed.

What the IR35 Forum means for contractors

A fresh approach by HMRC, or the starting pistol for a slew of new IR35 investigations? Both, writes Kate Cottrell.

HMRC publish IR35 Forum minutes

Customer segmentation model is best, says HMRC, yet it’s not without its challenges.

Taxman wants fresh approach to IR35

HMRC: New IR35 policy should focus on potentially caught contractor businesses.

IR35: Contractors can leave blank P35’s service company question

Limited company contractors under no obligation to tell HMRC if they’re a service company, says Accountax.

How to avoid IR35

First in a CUK download series of 2-minute guides, by experts for IT contractors.

When the fix for IR35-style legislation disappoints

Why an expected consultation on IR35 looks like only the beginning of a difficult end.

IR35 - Why it should stay

Part 2 of 2: The case for keeping IR35, by Seb Maley of Qdos Consulting.

IR35 - Why it should go

Part 1 of 2: The case for killing IR35, by Seb Maley of Qdos Consulting.

Contractors shouldn't rely on non-IR35 case law

HMRC has won all 4 High Court battles, and says it's no longer only about the money.

IT contractors warned on IR35 substitution clauses

A growing number of IR35 cases rest on the reduced clout of right of substitution.

IT contractors can't beat IR35 on their own

Dragonfly's defeat puts the onus on agents and clients to help contractors comply with the IR35 rules.

Contractors' Questions: Notice period: is my agent acting legally?

Legal expert: no notice may sound nasty but it helps against IR35.

IR35 Advice

Contractors' Questions: Can a lack of control save me from IR35?

Expert helps a long-serving contractor pinning his hopes on being ‘left to get on with it.’

Contractors' Questions: How does IR35's first split case affect me?

What IT contractors can do to help avoid being the next JLJ Services Ltd.

Contractors’ Questions: If a client only wants me, am I caught by IR35?

The Law Place offers guidance to a contractor worried a lack of substitution means the contract is automatically IR35-caught.

Contractors’ Questions: Can I beat IR35 by being a sole trader?

Avoiding IR35 entirely is possible, but has no guarantee and may be lethal.

Contractors’ Questions: How far back can HMRC apply IR35?

Revenue’s IR35 reach extends to every contract you had over the last six years.

Contractors’ Questions: Am I a service company, as form P35 asks?

Expert helps an IR35-caught contractor stuck on the service company questions.

Contractors' Questions: Is contracting for my ex-employer inside IR35?

IR35 advice for an IT consultant on the cusp of a 'Friday to Monday' scenario.

Contractors' Questions: Do email signatures affect IR35?

Contractors shouldn’t accept permie-sounding job titles on their client email signature.

Contractors' Questions: Should I have an IR35 war chest?

IR35 advice for an IT contractor saving for when a tax inspector calls.

Contractors' Questions: Is my tax set-up IR35-friendly?

IR35 expert helps an IT contractor wanting to avoid a risky tax position.

Contractors' Questions: Can I avoid IR35 entirely?

Expert lets down a self-employed web designer hoping for immunity from the IR35 rules.

Contractors' Questions: What to expect from IR35's successor?

Compliance experts Qdos on what the spawn of IR35 might look like.

Contractors' Questions: Are 'other duties' inside IR35?

IR35 expert helps an IT contractor bound to 'other duties required by the client.'

Contractors' Questions: Do many short contracts preclude me from IR35?

Ex-tax inspector advises an IT contractor anxious about employment status.

Contractors' Questions: Does hiring preclude me from IR35?

Legal aid for a 'Ltd' contractor hoping to duck the IR35 rules by becoming an employer.

Contractors' Questions: Is IR35 a factor overseas?

Tax advice for a UK 'Ltd' contractor worried about employment status abroad.

Contractors' Questions: Can a 2-week gap beat IR35?

IR35 expert helps a budding contractor with 'Friday to Monday' intentions.

Contractors' Questions: Does using client kit affect IR35?

Arguing against control is easier with your own kit, says IR35 expert.

Contractors' Questions: Any IR35 risk to an attendance policy?

IR35 expert helps an IT contractor facing a 'bums on seats' request from his client.

Contractors' Questions: How to freelance for my employer?

Legal aid for an IT consultancy employee eyeing work as one of their contractors.

Contractors' Questions: Can I dodge IR35 by winding up?

The long tail of IR35 can catch contractors who close one 'Ltd' and start another.

Contractors' Questions: How to maximise my pension under IR35?

IR35-contractor wants the least taxing way to make pension contributions.

Contractors' Question: Is my substitution clause IR35-friendly?

Even direct contractors need an unfettered right to substitute, says IR35 advisor.

Contractors' Questions: Any IR35 risk to 'pre-employment' survey?

One IT contractor worries about the IR35 implications of a 'pre-employment' form.

Contractors' Questions: Any IR35 risk to winding up?

Expert's take on whether dissolving your 'Ltd' will put you on the Revenue's radar.

Contractors' Questions: Is it worth a second IR35 opinion?

Expert: don't waste time on getting the answer you'd prefer.

Contractors' Questions: Is my agent 'IR35-friendly'?

Expert clears up claims that default agency contracts can't be redrawn over IR35.

IR35 News

Fifth IR35 Forum folds under heavy workload

So much to do, in such little time, sees HMRC cancel today's IR35 meeting.

Jan 18, 2012

IT contractor JLJ in first ever 'split IR35 case'

Unprecedented ruling puts contractors who break from specific projects in the dock.

Dec 14, 2011

What the fourth IR35 Forum meeting means for contractors

Only four months to go until the Revenue readies IR35's successor.

Dec 7, 2011

Revenue’s IR35 case yield up by 100%

HMRC honed its IR35 clampdown, putting in a lot less but collecting much more.

Oct 26, 2011

What the third IR35 Forum meeting means for contractors

Industry experts set to debate the IR35 status of 12 HMRC-fed scenarios.

Oct 7, 2011

More IR35 News>>

IR35 (Intermediaries) Legislation – further reading

IR35, also known as the Intermediaries Legislation, was introduced in April 2000. This complex piece was tax legislation was first proposed in the previous year's Budget, via a press release numbered IR35 with its purpose being to 'counter avoidance in the area of personal service provision'.

The legislation affects contractors and freelancers working for a hirer and looks to see if the relationship for the contract duration (or 'relevant engagement') is actually one of employment.

More specifically, the aim of IR35 is to prevent those working through an intermediary, such as a 'personal service company', or one person limited company, from avoiding the higher levels of tax and NICs that they would paying if, were it not for the intermediary, the relationship with the end client would be one of employment.

Prior to IR35, contractors falling foul of the IR35 rules could avoid being taxed as an employee by providing services in this way. Working through a limited company, a worker can decide how much salary to draw from the company (on which PAYE and employees' NICs are deducted) and how much to pay him or herself in dividends (which are derived from shareholding rather than employment and therefore do not attract PAYE or NICs).

HMRC were particularly concerned that a worker could "leave work as an employee on a Friday only to return the following Monday to do exactly the same job as an indirectly engaged 'consultant' paying substantially reduced tax and national insurance."

IR35 therefore was put in place to ensure that where an engagement is one of 'disguised employment', that the individual pays what HMRC cite as "broadly tax and NICs on a basis which is fair in relation to what an employee of the client would pay."