A Guide to IR35
If you are working as a contractor, you’ll need to be aware of an important piece of tax legislation, IR35.
As experts in accountancy solutions for contractors, we have a wealth of experience in helping people just like you to navigate through the complex world of tax. In the paragraphs below, we have constructed a comprehensive, straightforward breakdown of IR35 and what it could mean for you. For more information on our services, call our expert team on 020 7481 4743.
IR35 was introduced in April 2000 to tackle what HMRC see as disguised employment. In a nutshell, permanent employees were leaving their company only to return a few days later in the exact same role, but as a contractor rather than a permanent employee. As a result, such people would be able to take advantage of the tax saving benefits that are available to contractors, whilst not actually operating as one.
IR35 aims to prevent people from leaving full time employment only to falsely operate as contractors.