IR35 is the short name used for the ‘intermediaries legislation’, which is a set of tax rules that apply to you if you work for a client through an intermediary – which can be a limited company or “personal service company” which is how many contractors operate.

If you are caught within the legislation then you can expect to pay about 25% more in tax every year, so you want to try and ensure that it does not apply to you!

Despite having been in force since 1999, it is heavily criticised by tax experts and the business community as being poorly conceived, badly implemented by HMRC and causing unnecessary costs and hardships for genuine small businesses.

  • Introduced in April 2000. Being reformed in April 2017.
  • If you are caught, you will pay circa 25% more in tax
  • Based on complex employment case law
  • Should not affect professional contractors
  • Beware: Take professional advice to avoid