IR35 ForumSaturday, November 26th, 2011
IR35 legislation was designed to prevent the avoidance of tax and NICs being charged when services were provided through an intermediary, or Personal Service Company (PSC). Simply, where the relationship between worker and client is such that, were it not for the intermediary it would have been classed as employment, the normal tax and NICs rules apply.
The November 2011 meeting of the IR35 Forum in London contains two developments:
- HMRC have agreed that, ‘in order to reduce burdens on business’, they will be amending their risk rules to ensure that the overall nature of the intermediary will be considered, rather than just the contract in isolation, and
- HMRC have proposed that they will publish this risk criteria in a general form, which will allow intermediaries to determine whether or not they fall within IR35 legislation. However, they will not publish their entire risk profile
The minutes also confirm that new risk profiling and processes will be introduced from April 2012.
- IR35 Forum Minutes, November 2011