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Changing IR35 rules for contractors

ir35 tax rules contractors

I want to share some thoughts regarding changing IR35 rules. Lately, I can see many information regarding this and I think not all of them are correct.

People posting that IR35 regulations has been delayed. These rules are with us since 2000 and IR35 rules are not changing. The only part which is changing is obligation of checking employment status by the end client has been waived and still responsibility lays with PSC (Personal Service Company) so yourself.

We should watch it now more than ever, because HMRC may start enquires and if they find out that someone is still working as outside IR35 but actually is inside these rules, he/she might pay PAYE and NIC tax for this year and it can be backdated for the previous years also. Government will lose lots of money because of COVID-19 and they will need to recover it somewhere,

It is sensible more than ever to get IR35 insurance.

Decision at the end is yours, but I think my job is to warn you and show you the whole picture and not only best part of it.

Monika Litkiewicz- Chartered Tax Adviser