Over the course of 2019 and 2020, the Gattaca Group of companies will be engaging with all key customers to support them on the coming IR35 legislative amendments.
What is IR35?
- IR35 was introduced in 2000 to address concerns relating to individuals who supply their services via an intermediary (such as a Ltd Company) instead of as an employee, and therefore avoid paying employee income tax and national insurance contributions (NIC).
- Any individual deemed ‘inside’ IR35 (who is therefore considered to be operating in the same way as an employee for tax purposes, rather than on a self employed or consultancy basis) must pay income tax and NIC contributions.
- Any individual deemed ‘outside’ IR35 is classed as providing a genuine business to business service and is therefore not subject to the same tax treatment as employees.
- HMRC estimates that up to a third of workers operating via a personal services Ltd Company are incorrectly classifying themselves, leading to projected economic losses to the UK Treasury of approximately £1.2bn per annum.
