IR35 Personal Service Companies: The Facts

IR35 Personal Service Companies: The Facts

March 30, 2015 | No Comments

HMRC are using their powers to crack down on those who break IR35 rules. The problem we are seeing with many clients is that those rules can be incredibly complex to unravel. So here is your walk-through of the legislation in place, who it applies to and what HMRC are trying to crack down on. What is it? HMRC have special IR35 rules which are designed to prevent the avoidance of tax and national insurance contributions through the use of personal service companies and partnerships. Note, individuals can still operate through either their own personal companies or a partnership, but
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IR35 put simply

IR35 put simply

June 19, 2014 | No Comments

This is a tedious subject, I know, but HMRC seem to have caused plenty of confusion with their complex guidance once again. So here are the simple facts about IR35. Why? The IR35 legislation’s main purpose is to act as a deterrent to those knowingly avoiding tax and NI contributions. HMRC announced that to abolish IR35 would lead directly to a £550m estimated loss in revenue. Ultimately, HMRC is increasing the financial burden on contractors with a confusing system – who knows why they do what they do? Who does it effect? All contractors who do not meet the Inland
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