IR35 Articles

MPs: HMRC responsible for Government’s IR35 non-compliance

An influential group of MPs has blamed HMRC for ‘widespread non-compliance’ with IR35 rules in Government departments.

A new Public Accounts Committee (PAC) report on IR35 in the public sector has concluded that HMRC rushed the implementation of reforms and didn’t give public bodies enough guidance through the process.

IR35 rules were changed in the Public Sector in 2017 and the rules were extended to the Private Sector in 2021.

IR35 is the biggest obstacle to hiring specialist talent in the UK
marketing | 26 April 2022
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A year after IR35 reforms were introduced in the UK, a new report suggests that the changes are restricting access to specialist contractors.

The report also found that the majority of contractors will only consider ‘outside IR35’ contracts, despite a glut of available ‘inside IR35’ contracts.

Time to ‘name and shame’ non-compliant umbrellas?

The new CEO of the Freelancer and Contractor Services Association (FCSA) hinted that his organisation could start ‘naming and shaming’ non-compliant umbrella companies in a bid to boost standards.

93% of contractors thought about using an umbrella company last year
marketing | 13 January 2022
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Following the introduction of new IR35 rules in April, more than 90% of contractors thought about ditching their limited companies for umbrellas in 2021.

New rules affecting private sector clients mean that contractors are much more likely to be judged ‘inside IR35’ when starting a new contract.

marketing | 10 December 2021
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New figures show that HMRC pays most of its temporary workers through umbrella companies.

However, the UK tax authority has denied that it has a partial outside-IR35 hiring ban in place.

HMRC’s accounts, which run to the end of March 2021, show that the taxman engaged 403 temporary workers in one year. Of this number, only 15 were classed as ‘inside IR35’, which means they were operating through a limited company, but paying tax and National Insurance contributions like an employee.

How to close your limited company

Following changes to off-payroll working rules and the end of a 12-month ‘light-touch’ enforcement period, many contractors are finding it increasingly difficult to operate ‘outside IR35’ through a limited company.

Some contractors are now at risk of being permanently locked into high tax, low benefit ‘inside IR35’ arrangements.

IR35 changes damage business growth, research finds
marketing | 12 April 2022
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One year after new IR35 rule changes were introduced in the private sector, research from the Association of Independent Professionals and the Self-Employed (IPSE) suggests they have harmed UK businesses.

Can inside-IR35 contractors work through a limited company in 2022?

Changes to off-payroll working rules (also known as IR35) came into effect in the private sector in April 2021. These rules mean that private sector clients judge a contractor’s IR35 status, rather than the contractor themselves.

Following a period of ‘light touch’ enforcement during the pandemic, HMRC is expected to enforce the new rules more rigorously in 2022. In the coming months, many companies may be revisiting contractor policies and IR35 judgements.

Government opens umbrella working consultation

Contractors and agencies are being encouraged to share their views in a new consultation on umbrella working.

Umbrella companies support the flexible labour market by providing employment services for temporary workers.

Sky Sports Presenter Hit with £281,000 IR35 Bill
marketing | 12 November 2021
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A court has ruled that former Sky Sports darts presenter Dave Clark owes HMRC more than £281,000 in tax after he lost an IR35 case appeal.

55-year-old Clark, who suffers with Parkinson’s disease, is the latest in a series of TV and radio personalities to find himself under investigation for suspected breaches of IR35 rules.

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