IR35 it's big, it's bad and it's all over your newsfeed! But what is it? And why do you need to know anything about it? Let me take you on a journey to explain what IR35 is and why it's important.
What is IR35 and what is changing in April 2020?
What is the impact of the IR35 Private Sector Reform?
Depending on where you get your news from, will determine how you view this change to IR35. Certain groups feel this could lead to the end of the contracting market in the UK. Others see it as an inconvenience but understand the reasons for the change and are open to working with the new reform.
How do I know if I'm inside or outside of IR35?
Let's look at the key areas that you need to consider to help you decide if you are inside or outside of IR35. But first, let me start this section with a short statement "The IR35 legislation is very GREY, the main reason this is such a hot topic is the fact the legislation and the ares it focuses on cannot give you a straight answer".
What are the penalties if my IR35 status wrong?
The main reason the UK is concerned about the new reform is due to the fact it introduces the client into the IR35 mic. Up until now, failure to comply with IR35 rules fell swiftly and fully on the PSC contractor and consisted of payment for unpaid employment taxes dating as far back at seven years (ouch). Which for most contractors was a risk worth the reward as the PSC contractor would benefit from a more profitable tax structure.