Change to IR35 Office Holder Exemption

12 December 2012

Yesterday the Government published the Finance Bill 2013 which sees a change to the IR35 exemption that was available to Office Holders.

Previously an "Office Holder" caught by IR35 could claim exemption as the result of being an office holder where they were performing their assignment. This change does not mean that all office holders will be paid after the deduction of PAYE but just that they will be subject to the same IR35 legislation as all other contractors working through their own limited companies.

The Finance Bill 2013 comes into effect from April 2013.

An office has been judicially defined as ‘permanent, substantive position which had an existence independent from the person who filled it, which went on and was filled in succession by successive holders.'