IR35 Guides - IR35 Contract Review - IR35 Insurance

IR35 Insurance - Are you protected?

How you can cover yourself against professional costs, and even back taxes, if you are the subject of an IR35 status enquiry.

How the HMRC IR35 investigation process works

In light of the new HMRC IR35 guidance, we look at how an IR35 enquiry will typically originate - typically via an Employer Compliance Review.

(May 15, 2012)

New HMRC specialist teams set to increase number of IR35 reviews

Although the release of new HMRC guidance has made no difference to the underlying IR35 legislation itself, it could signal the start of a concerted effort by the tax authorities to carry out an increased number of compliance reviews.

(May 10, 2012)

New IR35 business test and IR35 scenarios go live

After weeks of speculation, HMRC has published new IR35 guidance, including a business entity test and a set of typical IR35 scenarios.

(May 9, 2012)

IR35 compliance - are you inside or outside IR35?

If HMRC decide to conduct an IR35 status enquiry, there are a number of factors which will be taken into account when determining whether or not your contract will fall within the scope of IR35 or not.

(May 8, 2012)

HMRC business test only a minor change to IR35 administration

Since the details of the proposed HMRC IR35 business test were first posted online last week, some have expressed 'shock' at these so-called leaks, but one must not forget that the official test itself is just a minor development in the process to overhaul IR35.

(May 2, 2012)

Most contractors would fail the IR35 business test

As the contents of the proposed IR35 business test appear online, it is easy to see why a rift has formed between HMRC and business groups, as it would appear that most contractors would face at least a medium risk of an IR35 investigation.

(Apr 27, 2012)

IR35 - Confirmation of Arrangements

Alongside a IR35 compliant contract, and matching working practices, a document confirming the true working arrangement between contractor and client is an important tool in demonstrating self employment. Includes free template download.

(Apr 18, 2012)

Over 3000 PCG members take IR35 business test trial

Over 3,000 PCG members have already taken part in a trial to determine how accurate the proposed HMRC IR35 business entity tests may be in real world scenarios.

(Apr 13, 2012)

Doubts raised over proposed IR35 business test

Concerns over the way IR35 is administered in the future have been raised as members of the IR35 Forum disagree with HMRC over the content and scoring of the proposed IR35 business test.

(Apr 4, 2012)

HMRC IR35 business test could go live in April 2012

The latest IR35 Forum minutes show that new trial business tests will be made live on the HMRC website in April, together with a set of typical scenarios to help establish how likely a business is to be caught by IR35.

(Mar 24, 2012)

Ambiguous IR35 Budget statement causes industry excitement

The final part of the short Budget 2012 statement afforded to IR35 has created further uncertainty for contractors, according to some industry experts.

(Mar 21, 2012)

IR35 remains firmly in place following Budget 2012

As was widely expected, the IR35 rules remain in place following Budget 2012, taking up only a few lines in the accompanying Budget documents.

(Mar 21, 2012)

Final OTS report suggests IR35 changes will be announced in April 2012

The Office of Tax Simplification has delivered its final report on HMRC administration, in time for the next Budget. The report reiterates the need for substantive progress to be made on IR35, with changes due to be announced in April 2012.

(Feb 29, 2012)

HMRC finalising strategy to overhaul IR35

HMRC is finalising its plans to improve the way IR35 is run, following input from a wide spectrum of industry experts via the IR35 Forum.

(Feb 24, 2012)

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)