IR35

IR35 applies if you carry out work through an “intermediary” – typically a limited company of which you are a shareholder with a holding of more than 5% - to an end-user under circumstances in which, were there a contract direct between yourself and that end-user, that contract would be one of employment.

IR35 was announced in 1999 as an anti-avoidance measure and seeks to deny that freelance contractors are genuinely in business and to tax them as employees without establishing a proper employment relationship. Its extraordinary complexity makes it almost impossible for contractors to assess whether they fall within it or not - in some cases their status may rest on contracts they have never seen.

IR35 advice and tips
IR35 was introduced because the Government believed that some people were providing their services through a limited company or a partnership as a means of avoiding tax.
What to expect from an enquiry into IR35
Some advice and guidance on the general process HMRC enquiries generally follow and the steps to take.
PCG's Guide to IR35
This guide provides a comprehensive overview of IR35 and includes advice on working out your IR35 status, drawing up an action plan to address any weaknesses in your position and establishing a paper trail ready to defend against any Revenue challenge.
An update on recent IR35 Case Law
There has been concerns that HMRC has updated the employment status manuals (ESM) on its website to reflect recent ‘IR35 victories’ - namely Dragonfly Consultancy Ltd and Larkstar Data Ltd.