What is IR35?
Much has been talked about the changes to the tax regime for temporary (or ‘off payroll’) workers that have come into force this April. Similarly, many column inches have been written about the likely impact on business, how to manage and mitigate these changes etc. With many clients now unsure and worried about its impact we are going back to basics and asking, “Fundamentally, what is IR35?”
IR35 has been on the statute book for a number of years, and was initially put in place for the public sector back in 2000 to enable HMRC to identify and mitigate unpaid tax and NI from those described as ‘disguised employees’. IR35 aims to ensure that all workers are taxed fairly. This means that if an individual is defined as a ‘disguised employee’, effectively doing the same job under the same conditions as an employee, the rules ensure parity in the amount of tax and NI paid to HMRC.
Norman Broadbent plc (LON:NBB) is a leading Professional Services firm offering five interrelated Talent Acquisition & Advisory Services: Board & Leadership/Executive Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Recruitment solutions.
