Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Effect of IR35 rules

20 February 2018 / Dave Chaplin
Issue: 4636 / Categories: Comment & Analysis
istock-874478494_fmt

On or off?

KEY POINTS

  • Anticipated changes to IR35 in the private sector could cause difficulties for organisations that engage contractors.
  • Changes in the public sector have seen contractors over-taxed and subject to ‘false employment’.
  • Recent activity by HMRC has stoked non-compliance among contractors.
  • Firms and contractors have little time to get practices in place to prevent damage to the private sector.
  • Tax advisers need to provide expertise and help clients prepare for drastic changes.

Tax advisers dealing with contractors and contractor-hiring firms can expect a heavier workload in future courtesy of the ever-contentious IR35 rules. All indications point towards a change to the tax legislation in the private sector coming as soon as April 2019 in a move that could have disastrous consequences for clients.

IR35 removes the tax advantages of limited...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon