What is IR35 Legislation?
The IR35 is a UK tax legislation introduced by HM Revenue & Customs (HMRC) in 2000. Its purpose is to ensure contractors pay the right amount of tax and National Insurance by ensuring workers (classed as ‘disguised employers’) cannot use a limited company , to pay less tax as they should be employed directly by the client they are working for and treated as an employee. If a worker is seen as an employee, they would have to pay the same tax and National Insurance as a permanent employee. The government defines IR35 as ‘off-payroll working through an intermediary’.
Changes to IR35 Legislation?
Changes are being implicated into IR35 Legislation due to contractors not paying the correct tax and National Insurance and incorrectly assessing their IR35 status. The non-compliance has reportedly costed HMRC millions therefore the rules are changing in hope to ensure compliance.
IR35 changes are being introduced in April 2020 to move the responsibility for assessing IR35 obligations from the contractor to the end user. The fee payer will be responsible for calculating and paying the related tax and National Insurance contributions to HM Revenue & Customs.
Who is affected by IR35 upcoming rules?
• Contractors providing services to medium and large businesses;
• Fee-payers in the recruitment sector; and
• Medium and large businesses in private sector that are end user of the worker’s services.
Expert London Tax Investigation Lawyers
If you need HMRC Tax Investigation advice, we are available to aid you at every stage of the HMRC investigate process. Members of our legal team have first-hand experience and knowledge of the internal workings of HMRC. We can provide you with the very best representation in negotiations with HMRC and defending all forms of HMRC fraud, tax inquiry, tax fraud investigation, criminal tax evasion and HMRC enquiries and investigations. Our team specialises in successfully challenging HMRC decisions and will assist you in every aspect of the investigation.
Our specialist Tax Solicitors and Barristers deliver expert technical knowledge, strong negotiation skills and respected advice, which can make a pronounced difference to eventual tax penalties, charges and liability.
We provide urgent advice and representation to clients from our unique expert team of established Tax and Duties specialist solicitors and barristers with a proven track record of delivering authoritative results. Just call us on 0207 1830 529, or email [email protected].