IR35, formally known as off-payroll working rules, are a tool used by HMRC to check whether a contractor is genuine. Some instances will arise where contractors are being “disguised” as employees for tax purposes, and thus IR35 is in place to ensure everyone pays their fair share. While the changes were first due to be introduced in April 2020, they were delayed by a year as a result of the COVID-19 crisis.
However, Mr Oury urged all Britons to take particular caution when it comes to IR35 decision making.
This is because each contract will be different, and therefore a separate IR35 decision will need to be made on each one.
This, he said, has the potential to create a “minefield” of decision making when it comes to IR35.
IR35 rules will not apply in a number of circumstances, and these will be important to check.
If an organisation is not a UK limited company, for example, and is not supplying services to a client who is a limited company, IR35 will not apply.
If those doing the work concerned do not own more than five percent of the limited company, and the worker is not…
