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INTERMEDIARIES LEGISLATION: What next for IR35?

30 October 2015  

Kate Kelleher sets out the government’s proposals on how to improve the rules that govern the taxation of personal services companies

The way the UK tax system operates means that people pay different amounts of tax depending on whether they work as an employee, are self employed or work through their own limited company, often referred to as a personal services company (PSC). The legislation for the taxation of intermediaries is referred to as IR35 after the press release issued following a statement by the chancellor in the 1999 budget. It was introduced in 2000 to tackle the avoidance of employment taxes by those who choose to work through intermediaries, primarily their own PSC. This type of arrangement is common in a number of sectors – particularly IT, entertainment, construction, transport, security, oil and gas and the public sector – and it is also used by those with a portfolio of appointments.

 

Last modified on 26 October 2015