Four new IR35 documents you should read right now

The sheer scale of April’s IR35 changes in the public sector was laid bare yesterday with the publication of four new chunky documents via HMRC; one of which contains more than 100 sections.

The four are:

  1. HMRC Guidance on the IR35 changes (includes new IR35 case studies / “Examples”)
  2. Government response to HMRC’s May 2016 consultation on the IR35 changes
  3. Tax and Information Impact Note (TIIN) on the IR35 changes
  4. Chief Secretary to the Treasury’s letter confirming the IR35 changes

HMRC Guidance on the IR35 changes (includes new IR35 case studies / “Examples”)

Entitled ‘Off-payroll working in the public sector: reform of the Intermediaries legislation – technical note,’ the longest document (108 sections) is new IR35 guidance from HMRC.

It includes a background, overview, summary of changes and examples of the IR35 reform. It can be accessed here. (N.B. the only outside-IR35 example, ‘Jasmine,’ is not in PDF format)

Government response to HMRC’s May 2016 consultation on the IR35 changes

Seemingly almost as long, but spanning a shorter-sounding 19 pages, is the government’s newly published response to the consultation on the IR35 changes.

The consultation ran from May to August 2016. It includes the government’s decision to abandon the IR35 ‘gateway tests.’ It can be accessed here.

Tax and Information Impact Note (TIIN) on the IR35 changes

The TIIN, also called 'Policy Paper,' is the tax and information impact note outlining the IR35 changes. Ideal for the time-pressed contractor, it has 7 comparatively brief sections.

It features the estimated impact of the IR35 changes on the exchequer, and on others -- such as agencies, HMRC, clients and the PSC community. It can be accessed here.

Chief Secretary to the Treasury’s letter confirming the IR35 changes

The Treasury’s David Gauke has written to Secretaries of State confirming the IR35 changes from April. Section 7 of his letter contains the “big surprise” of the draft legislation.

His letter confirms an IR35 tool is being built to help determine IR35’s applicability to “any given individual.” This wording will make the private sector suspicious, as will section 13.

Mr Gauke tries to head off such suspicions in sections 11 and 12. He ends his letter by telling public sector bodies that they will get updated HM Treasury guidance “in due course”.

Tuesday 6th December 2016