What is IR35

IR35 was issued as a Budget press release by the Inland Revenue.

The IR35 tax rules were designed to prevent tax avoidance by workers using limited companies referred to as "intermediaries" to reduce their tax and NIC liabilities when really they should have been paying tax as if directly employed.

IR35 guidance states that if an intermediary was being used and the employment relationship between the worker and their client would have normally been direct employment, the worker should pay tax and NICs like any other employee.

IR35 legislation has proved open to much interpretation, and many people who thought they were not affected have been charged back taxes or been taken to court and lost.

MoneyBox5 offers a PAYE online solution to contractors who do not fall within the IR35 rules.  Should you wish to discuss how IR35 effects you please call one of our experts for guidance.