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What is IR35?

IR35, or off-payroll working legislation, is a set of legislation introduced by HMRC to ensure that contract workers are  paying the correct amount of tax and NIC and to reduce the level of tax avoidance.

The legislation in its original form has been around since April 2000, but following criticisms of its implementation and application by tax experts and small businesses, the law was revisited and is being rolled out as the new Off-Payroll tax from April 2020 onwards. 

Previously, the contingent worker was responsible for determining their own IR35 status, however this responsibility will now shift to the End User (the organisation that engages the worker). Failure to take action could result in significant financial penalties from HMRC. 

Unsure where to start with IR35 changes? Below you can find all the information you need to fully understand IR35 and its implications for you. We've also put together a downloadable guide on IR35 which can be accessed by clicking the button below:

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