Media reports suggest that the Treasury is planning to overhaul IR35 tax rules with a costly policy for limited company contractors.
The move, which could be announced in this month’s Budget, would see public sector IR35 compliance rules extended to the private sector.
Just like public sector bodies, private firms would be responsible for ensuring that off-payroll personal service company contractors stick to the IR35 rules.
If a firm deems a contractor to be ‘inside-IR35’, the contractor would need to be placed onto the company’s payroll and would be liable to pay higher national insurance contributions.