What is IR35?

The Inland Revenue set up new rules commonly known as IR35

The purpose of the new rules is to remove opportunities for the avoidance of tax and Class 1 National Insurance Contributions (NICs) by the use of intermediaries, such as service companies or partnerships, in circumstances where an individual worker would otherwise be an employee of the client or the income would be income from an office held by the worker.

Contracts can also be submitted to the Inland Revenue for an opinion as to whether the Revenue thinks they are within the scope of the IR35 rules. If you are sending in a contract for this purpose, you will need to make sure that you also send any other relevant information, including a description (in layman's terms) as to what the work is and how it is carried out, and any background information such as other contracts entered into that may have a bearing on the matter.

Considering the implications of IR35 it is advisable to have the advice of an independent organisation to boost your chances of work being IR35 compliant