This guide covers IR35 compliancy and more.
IR35 (also known as the off-payroll working rules) is a set of tax legislation introduced by HMRC to tackle “disguised employment” where individuals work as if they are employees, but operate as self-employed or through a limited company or intermediary to gain tax advantages.
Why small businesses should care about IR35 compliancy…
- If your business hires contractors or consultants through intermediaries (e.g. Personal Service Companies), you may be responsible for determining their IR35 status.
- Mismanagement can lead to penalties, backdated tax payments, and reputational damage.
