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IR35 News

From April 6th 2017, IR35 status for Public Sector Contracting will be determined by the client, not the contractor.

For more information on these upcoming changes visit Public Sector Contracting. You can also have a look at what the contractors and industry experts are saying about it in our Public Sector IR35 Forum.

If you are unsure of your IR35 status you can get an IR35 contract review. You can also cover your tax and IR35 risks with IR35 insurance.

There is further IR35 information below.

Recent legislative changes bring the IR35 rules for income tax closer to those which already apply for National Insurance contribution purposes.

An EAT hearing last week delivered a welcome boost to the campaign to prove that contractors should not be deemed to be employees of the end client.

PCG's advice to freelancers is that neither they nor their accountants should submit their P35s before the Synaptek judgement, expected in a fortnight.

Article on the Revenue's thinking towards contractors working on site and during fixed hours. Do these factors determine whether you are inside IR35?

The Synaptek IR35 case concluded today at the High Court in London. Judgement will be handed down in two or three weeks' time.

The Synaptek IR35 case was heard by Mr Justice Hart at the High Court today. The remainder of the appeal will now conclude Friday morning.

A key IR35 case is set to make headlines next week – the first High Court hearing of an individual IR35 case since the legislation was enacted.

Since IR35 was announced various inventive means and schemes have been put forward to circumvent the legislation. But do they really work?

The Revenue's thinking toward substitution clauses in agency contracts, and whether they do indeed defeat IR35.

A potential tax threat to contractors has been highlighted, which could affect those who pay dividends on limited company shares to a spouse.

A contractor receives a favourable IR35 contract review showing that the Revenue will back down on excessive requests for information if pushed!

In a widely publicised speech, Inland Revenue Chairman Nick Montagu last week pledged vigilance against artificial "tax avoidance" schemes.

A recent IR35 opinion reversal goes to show that not only is professional advice necessary, but also that you shouldn't accept a Revenue decision without a fight.

There were a number of interesting points arising from John Williams' unfair dismissal appeal last week. The employment status implications of the decision.

IT Contractor, John Williams, lost his unfair dismissal hearing appeal against Hewlett Packard and Certes at the EAT last week. The judgement summary.

In what is being referred to as the 'Aer Lingus' case, the Revenue's application of IR35 has suffered another blow as an original contract ruling has been reversed.

A former Hewlett Packard IT contractor is set for an unfair dismissal appeal hearing at the EAT in December. The story behind his IR35 case.

The Tax Law Review Committee of the Institute for Fiscal Studies has called for employment status law to be reviewed "across the board"

The recent Lime-IT decision has highlighted the importance of project-based contracts as a means of legitimately operating outside IR35.

The Lime-IT victory is the third and latest decision by the Special Commissioners on IR35. Full analysis of the judgement by John Antell.

IT contractor company, Lime-IT, has won a strong victory in its Commissioners IR35 appeal and has 21 days to decide whether to apply for costs.

Lime IT's case went to the Special Commissioners last week. Simon Juden was in court for the PCG and provides a vivid summary of events.

With the introduction of IR35, it is important that "one man company" contractors ensure that their contracts accurately reflect the way they work.

A key article by John Antell which looks into the distinctions between 'employment' and 'self employment', including the situation of 'agency workers'.

At a recent hearing before the General Commissioners, a contractor working on standard agency terms has won his appeal, and is now officially outside IR35.

New team takes up political consultancy and lobbying role of the organisation.

The fate of another IT contractor will be decided by a Special Commissioners IR35 hearing in London on 2nd and 3rd October.

An article about one particular essential feature of employment contracts known as Mutuality of Obligation (MOO).

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

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

For a long time, contractors were beginning to think that the Government and the Inland Revenue were against them, and that no matter what they did, they couldn't win.

The Inland Revenue was warned not to go on 'fishing expeditions' when investigating a tax payer during a recent hearing at the Special Commissioners into an IR35 case.

"The good news is that the draconian IR35 legislation relating to personal service companies doesn't apply to nannies..."

The latest Inland Revenue Tax Bulletin includes a section which warns 'composite' companies that the IR35 rules apply to all employees regardless of the type of company they work under.

A huge amount has already been written about IR35 to help contractors and their advisors understand the issues. However it is important that contractors beware of 'quick-fix' solutions to IR35, particularly with regard to the drafting of contractual terms and conditions. The nature of, and method of providing, the work being undertaken is of crucial relevance. It is wrong to solely focus upon what the contract states.

"Having conducted literally hundreds of IR35 reviews, and submitted dozens of contracts to the Revenue for approval it has become apparent that the most effective way to avoid IR35 is not by contract manipulation or convoluted avoidance schemes, but simply by restructuring your business."

To send, or not to send, that is the question? Do you want to stick your head in the sand, spend the taxman's money and hope he doesn't catch you, or strip naked, cover yourself in honey and run into the tax office to be stung to bits. A tough choice my fellow entrepreneurs.

"You have a contract for the provision of your services to a client. It is not certain that it is a contract for services, but nor is it certain that it is a contract of service. Like many, perhaps most contracts, it may be more likely to be one than the other but you cannot be absolutely sure of its status. You don't want to assume that it is a contract of service because that means paying more tax, perhaps unnecessarily. But on the other hand you don't want to assume that it is a contract for services, and pay less tax, if that means running the risk of the Inland Revenue later demanding back tax, interest, and even, perhaps, penalties."

Employment Status in Relation to Statutory Employment Rights". The Government are seeking to establish whether there are categories of working people who are currently excluded from statutory rights who require protection.

In an open letter to the Paymaster General, the Professional Contractors Group has responded to a statement that it has been "totally silent on every issue over the past 12 months". Dawn Primarolo had made the comment when replying to an amendment put by the Shadow Chief Secretary to the Treasury, John Bercow MP, in which he called for special provision to be made over the training costs of those caught by IR35.

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