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The aim of the IR35 rules, or 'Intermediaries Legislation', is to tax 'disguised employment' at a similar rate to employment.

Both your contract wording and working practices should demonstrate that you are 'self employed' in order to escape IR35.

Following the March 2011 OTS IR35 Review interim report, The Chancellor decided to keep IR35 'as is' during Budget 2011, but with improved HMRC administration, including the creation of a new IR35 Forum.

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Directories - Leading umbrella companies and contractor accountants.

Latest IR35 News & Guides

Would student loan boss have been caught by IR35?

Following news that the Student Loans Company boss has been receiving remuneration via his own personal services company, we ask whether this would this have made him a classic target for an IR35 investigation.

(Feb 2, 2012)

Does IR35 apply to sole traders?

Although the Intermediaries Legislation was created to target alleged disguised employment by limited company directors, how are sole traders affected by IR35?

(Feb 1, 2012)

Tax Tribunal hearing deems contractor to be part-caught by IR35

John Spencer, a retired IT specialist, experienced mixed emotions at a recent First Tier Tax Tribunal hearing, where a long-term engagement was deemed to be only partially subject to the IR35 rules.

(Dec 14, 2011)

IR35 Forum - HMRC proposals to target higher risk IR35 targets

The latest IR35 Forum minutes show that advances have been made over how HMRC proposes to more accurately identify IR35 targets in the future.

(Nov 23, 2011)

IR35 raises millions each year from self-certifying contractors

A new Freedom of Information Request reveals that significant sums of tax have been raised from contractors who self certify themselves as being caught by IR35.

(Nov 9, 2011)

Fewer HMRC IR35 status enquiries, but tax yield per case soars

HMRC has released further data showing that the number of IR35 status enquiries has dropped dramatically since the early 2000's, but the tax raised per enquiry in more recent years has increased greatly.

(Oct 26, 2011)

IR35 Forum - HMRC seeks further industry help in improving IR35 administration

The latest IR35 Forum minutes show that HMRC is seeking further feedback from industry stakeholders to help improve the way IR35 is currently administered.

(Oct 9, 2011)

IR35: is it possible to balance the interests of contractors and HMRC?

Marc Morris from 1st Option looks at HMRC's conflict between maximising its tax yield, and encouraging the development of a flexible workforce in the UK.

(Oct 4, 2011)

Startling drop in tax yield from IR35 status enquiries

Data released by HMRC shows that the number of IR35 status reviews has shrunk massively in recent years, as has the amount of tax yielded as a result of such enquiries.

(Sep 22, 2011)

Lib Dem policy paper calls for IR35 to be suspended

A new Liberal Democrat IT policy paper, to be debated at the forthcoming party conference, has called for IR35 to be suspended.

(Aug 30, 2011)

Forum discusses IR35 helpline and HMRC compliance measures

The minutes of the second IR35 Forum meeting have been published, and covered areas such as the IR35 helpline, and how HMRC's compliance units intend to operate in the future.

(Aug 2, 2011)

Supreme Court confirms Autoclenz ruling over sham employment contracts

The UK Supreme Court has upheld an earlier ruling by the Court of Appeal that contract wording cannot determine the employment status of workers, if it doesn't reflect the reality of the working arrangements.

(Jul 29, 2011)

HMRC targeting under further scrutiny following Primary Path Ltd IR35 victory

A tax tribunal has found another contractor to be in business on his own account following an eight year IR35 challenge by HMRC.

(Jul 14, 2011)

HMRC suffers another IR35 defeat - engineering contractor not an employee

In an IR35 defeat for HMRC, a tax tribunal failed to find any evidence that a contract of employment existed between an engineering contractor and his client.

(Jul 4, 2011)

Why was IR35 introduced in the first place?

We look at why the Intermediaries Legislation was created, who it is aimed at, and the problems that complying with IR35 has caused contractors since 2000.

(Jun 21, 2011)

IR35 insurance - tax investigation cover

IT contractors may wish to take out tax investigation and/or IR35 insurance to cover them in the event of a status challenge by HMRC.

(Jun 17, 2011)

Expert says IR35 Forum presents a real opportunity

Employment status expert Kate Cottrell tells us how the inaugural meeting of the IR35 Forum went, and what issues and challenges lie ahead.

(Jun 6, 2011)

IR35 Forum - progress made at inaugural meeting

The first meeting of the new IR35 Forum took place on 6th May 2011. The minutes of this inaugural gathering have been published online.

(Jun 3, 2011)

Government confirms commitment to IR35 administration overhaul

The Exchequer Secretary to the Treasury, David Gauke MP, has confirmed the Government's Budget 2011 commitment to overhauling the way IR35 is administered.

(May 23, 2011)

Now HMRC targets entertainers for IR35 back taxes

An entertainment industry newspaper has reported that a number of leading actors who work via their own personal service companies have received backdated national insurance demands as the HMRC applies IR35 to the performance industry.

(May 20, 2011)

IR35 victory for contractor after five year wait

A tribunal has found in favour of a contractor who faced a 50k backdated tax bill had she been found to be a disguised employee as per the IR35 rules.

(May 16, 2011)

Exchequer Secretary promises real improvements in IR35 administration

The Exchequer Secretary has acknowledged the role contractors play in the business community, and says that HMRC is committed to completely overhauling they way it administers IR35.

(May 5, 2011)

Recruitment body joins new Government IR35 forum

REC, the recruitment industry body, is to join the Government's IR35 forum, which will oversee HMRC's attempts to improve the way the legislation is administered.

(May 4, 2011)

IR35 tax - a brief history of the intermediaries legislation

Following the Chancellor's decision to maintain the IR35 status quo at the last Budget, we take a look back at how the intermediaries legislation came into being.

(Apr 27, 2011)

New Forum will monitor HMRC's administration of IR35 rules

The PCG has been invited by the Government to join a new IR35 Forum, which will be established to help monitor and evaluate HMRC's administration of IR35.

(Apr 8, 2011)

Budget 2011 - IR35 to stay

The Chancellor has announced that IR35 is to remain in place following the 2011 Budget.

(Mar 23, 2011)

Recruiters say HMRC too over-worked to cope with further IR35 enforcement

REC, the recruitment industry body, says that HMRC does not have the resources to devote to additional IR35 enforcement - one of the options provided by the Office of Tax Simplification last week.

(Mar 21, 2011)

IR35 review - contracting industry reaction

Industry experts and interested parties have given their initial reactions to the IR35 alternatives proposed by the Office of Tax Simplification this week.

(Mar 11, 2011)

Alternatives to IR35 - the impact on contractors

In its interim report, the OTS proposed three main alternatives to the current IR35 regime. What impact would each scenario have on the contracting industry?

(Mar 10, 2011)

OTS IR35 interim report - what does it say?

The Office of Tax Simplification (OTS) has published its interim report into the way small businesses are taxed, which includes recommendations on how to deal with IR35.

(Mar 10, 2011)

PCG calls on Chancellor to abolish IR35 following OTS report

The UK's leading freelancer organisation has called on the Government to suspend IR35 with a view to permanent abolition.

(Mar 10, 2011)

Will OTS duck IR35 issue in its interim small business taxation report?

A report in The Telegraph today suggests that the Office of Tax Simplification (OTS) will highlight the difficulties of replacing IR35 with a workable alternative when it delivers its interim report into small business taxation tomorrow.

(Mar 9, 2011)

Most recruiters believe that IR35 cannot stay in its current form

The vast majority of recruiters believe that IR35 is ineffective and ripe for reform, according to a survey carried out by the Recruitment and Employment Confederation

(Mar 7, 2011)

OTS IR35 review - interim report due on 10th March

The Office of Tax Simplification has confirmed that it intends to publish its interim review of small business taxation (including IR35) on Thursday 10th March.

(Mar 4, 2011)

Tax simplification body gives verdict on UK's chaotic system of tax reliefs

The Office of Tax Simplification has completed its extensive review of the UK's 1042 tax reliefs, and made recommendations on whether over 150 reliefs should be retained, simplified or scrapped altogether.

(Mar 3, 2011)

OTS on target to deliver initial IR35 review report in coming weeks

The Office of Tax Simplification has completed a series of events around the UK, which highlighted the difficulties faced by small businesses and contractors - including the impracticability of IR35.

(Jan 28, 2011)

Contractor secures IR35 victory against HMRC after seven year wait

A Tribunal has found in favour of IT contractor Mark Fitzpatrick, clearing him of using his limited company to avoid tax.

(Jan 21, 2011)

PCG chairman joins IR35 review committee

The chairman of the PCG has joined the committee of the OTS which has been tasked with reviewing IR35.

(Nov 3, 2010)

IoD says Government must accept findings of IR35 review

The Institute of Directors says that the Government must accept the results of the IR35 review when they appear, to prove that they are fully committed to simplifying the tax system.

(Oct 25, 2010)

IR35 review - contracting industry expert joins OTS team

The OTS says that it is making good progress on both the tax simplification and small business tax reviews, and has recruited a team of leading private sector figures, including IR35 status expert, Kate Cottrell.

(Oct 22, 2010)

IR35 review body seeks contractors' opinions

The newly created Office of Tax Simplification (OTS) is to take onboard the results of a series of contractor polls and surveys, to help in its mission to review the way small businesses are taxed - including IR35.

(Oct 18, 2010)

Treasury confirms interim IR35 review report to be made by Budget 2011

During Treasury Question Time this week, David Gauke MP confirmed that the OTS intends to provide its interim findings on the review of IR35 in advance of the 2011 Budget.

(Oct 14, 2010)

Online IR35 test tool launched for contractors

Contractors can now access a free online employment status test which provides an IR35 status result in just ten minutes.

(Sep 2, 2010)

IR35 Review - what are the facts?

Kate Cottrell takes a look at the terms of reference for the long awaited review of IR35, and explains why IR35 cannot simply be reviewed in isolation.

(Aug 17, 2010)