United Kingdom tax law for individuals paid through personal service companies
IR35 is the United Kingdom's anti-avoidance tax legislation, the intermediaries legislation contained in Chapter 8 of Income Tax (Earnings and Pensions) Act 2003. The legislation is designed to tax 'disguised' employment at a rate similar to employment. In this context, "disguised employees" means workers who receive payments from a client via an intermediary, i.e. their own limited company, and whose relationship with their client is such that had they been paid directly they would be employees of the client.
Under Chapter 8, the worker of the limited company is responsible for assessing their IR35 status under the rules and paying the appropriate National Insurance and Income Tax to HMRC.
New legislation was introduced on 6 April 2017 (Chapter 10 Income Tax (Earnings & Pensions) Act 2003) to make public sector organisations responsible for assessing whether an individual providing services for their organisation on a contract basis fell under IR35 rules, and for paying the National Insurance and Income tax to HMRC where relevant.[1]
These rules (referred to as the off-payroll working rules) were extended to apply to private sector businesses that were classed as medium or large per the Companies Act 2006 as of 6 April 2021. This led to some lorry drivers deciding to retire, and thus contributed to the shortfall of lorry drivers in the UK.[2]
In the September 2022 United Kingdom mini-budget it was announced that the 2017 and 2021 reforms to IR35 would be repealed, at a cost of £6.19 billion over 5 years.[3][4] On 17 October 2022 however, the newly appointed Chancellor of the Exchequer, Jeremy Hunt, announced that the repeal would not go ahead and Chapter 10 would remain in place.[5]
^"ESM8001 - Introduction: overview of the legislation". Gov.UK. HM Revenue & Customs. March 2022. Retrieved 21 November 2022.
^Haslett, Emma (29 September 2021). "IR35: is this incredibly specific tax change exacerbating the petrol crisis?". New Statesman.
^"Mini-budget: The key announcements from the chancellor at a glance". Sky News. Retrieved 23 September 2022.
^"The Growth Plan 2022" (PDF). HM Treasury. September 2022. p. 26. CP 743. Retrieved 13 October 2022 – via gov.uk.
^"Chancellor brings forward further Medium-Term Fiscal Plan measures". HM Treasury. 17 October 2022. Retrieved 17 October 2022 – via gov.uk.
IR35 is the United Kingdom's anti-avoidance tax legislation, the intermediaries legislation contained in Chapter 8 of Income Tax (Earnings and Pensions)...
more prevalent in the UK since the British government introduced so-called "IR35" legislation that creates tests to determine employment status and ability...
were placed. She was also responsible for introducing the controversial IR35 tax rules which were designed to tax "disguised employment" at a rate similar...
for Tax" online tool used for assessing contractors' employment status for IR35 purposes under UK tax law Cesta, Kočevje This disambiguation page lists articles...
the directors and shareholders. This structure is largely born from the IR35 legislation of 1999, which came into force in 2000. In an MSC, workers are...
In April 2024, McCann lost a dispute with HM Revenue & Customs regarding IR35 rules, which resulted in him incurring a tax liability of approximately £210...
organization. In some countries this can lead to taxation issues (e.g., so-called IR35 violations in the UK). Ghost signing has little bearing on whether a writer...
hired via intermediaries. The press release announcing the legislation, IR35, is often used to refer to the legislation itself. Pass-through agencies...
First Tier Tribunal (FTT) appeal regarding his status as a freelancer under IR35 rules, with the judge determining his contract with ITV's This Morning programme...
to refer to "someone who works through their own limited company" under IR35 legislation. This disambiguation page lists articles associated with the...
1999 from some 2000 freelancers threatened by a government measure known as IR35. In 2003, jazz composer Maria Schneider (musician) launched the first crowdfunding...
of £200,000 plus,which has been paid.[citation needed] It was the first IR35 case that HMRC had won in seven years. The court documents indicate Ackroyd's...
a brothel Taxation Personal service corporation in United States tax law IR35, United Kingdom tax law for individuals paid through personal service companies...
(including alternative routes) are as follows: Lines IR26 (since 2020), IR35 (since 2021), and IR46 (since 2020) are jointly operated with Südostbahn...
contractors in the UK. It has been online since 1999, since the early days of IR35 and the initial inflation of the dot-com bubble. The website is home to the...
support 15 Stamp Duty reduction 7 Income Tax remove 45% rate band 7 IR35 easing 6 a Domestic energy support runs to Sep 2024, but only first 6 months...
controlled by your client, etc. placing a consultant "well outside" of e. g. IR35. Alan Weiss provides 20 "factors" for consultants in the US (IRS), which...
freelance BBC staff, investigated into the taxing of off-payroll working (IR35). The same 'disguised employment' loophole, Gosling previously faced public...
community after the introduction of intermediaries legislation known as IR35, because it appeared to offer more certainty concerning tax liabilities than...
the Income Tax (Earnings and Pensions) Act 2003 ss 48-61 and the leaflet IR35 on disguised employment. Also HMRC v PA Holdings [2011] EWCA Civ 1414. See...
companies potentially reducing tax. RSG confirmed all of its workers were inside IR35 and therefore made the correct levels of income tax and National Insurance...
delivery drivers. California Assembly Bill 5 (2019) False self-employment IR35 (UK) Gandhi, Natwar M. (1996-06-20). "Issues in Classifying Workers as Employees...
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