IR35 was first introduced in 2000. It was designed to reduce tax avoidance by contractors who HMRC believe to be “disguised employees”, who are people that work in a similar way to full-time employees but bill for their services via their limited companies to make their business as tax efficient as possible. For the most, these transactional relationships are genuine, but it isn’t uncommon to find firms paying freelancers in this way to avoid paying National Insurance contributions or providing employee benefits.
New rules coming into effect on April 2020 will mean that private sector companies will be responsible for deciding if a freelancer or contractors employment status is correct, rather than the individual deciding it themselves. These new rules have been in operation within the public sector since 2017. Research from YunoJuno, a freelance recruitment firm found that 43% of seniors within the private sector are unaware how IR35 would affect their business, with 42% unaware of fines for non-compliance.
What you will learn in this webinar:
- Learn about the IR35 rules in deciding is a freelancer sits inside or outside IR35
- How to carry out IR35 tests and what to do when transitioning a freelancer