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IR35 Case Law – Lime-IT
published on Sunday, August 18th, 2019
The court case between Lisa Fernley (Lime-IT Ltd.) versus Michael Justin (an officer of the board of Inland Revenue) was resolved on October 2nd 2002, with the Special Commissioners ruling in favour of Lime-IT. The issues of control and Mutuality of Obligation (MOO) were the key factors in the case, and these will be explored […]
Continue reading →IR35 Case Law – MKM Computing
published on Monday, August 12th, 2019
The court case between Martin Ellwood (Director of MKM Computing) and HMRC was resolved in 2008, with Special Commissioners ruling that Mr Ellwood had become ‘part and parcel’ of his client’s firm, and owed £27,000 in employment taxes under IR35. Issues of substitution, control and Mutuality of Obligation (MOO) were the key factors throughout the […]
Continue reading →Whatever Happened to the Business Entity Tests?
published on Thursday, February 21st, 2019
Prior to Check Employment Status for Tax (CEST), HMRC stood by the results of Business Entity Tests. Effective April 2015 the tests were abolished by HMRC although they did say that they would stand by the results for three years. What were these tests? The Business Entity Tests essentially established whether a company was truly […]
Continue reading →Filed under: IR35 News
Contractors Getting Employment Rights
published on Monday, February 4th, 2019
Private Sector companies are increasingly having to treat contractors more inline with permanent employees. There are an increasing number of cases going against the companies. At the end of 2016, Uber lost a legal bid to show that their drivers were independent contractors and this was recently confirmed on appeal. Two drivers demonstrated that they […]
Continue reading →Filed under: IR35 News, Private Sector
Number of Freelancers in the UK
published on Thursday, January 17th, 2019
According to the government’s figures there are 1.9 million Freelancers in the UK. This compares to just 1.4 million in 2014 in the data published by the small business research centre in Kingston University; as reported here. This represents a 35.7% increase in just five years. This is an exceptional increase considering in the previous […]
Continue reading →Filed under: IR35 News
HMRC Aggressively Pursuing Contractors About IR35
published on Monday, January 14th, 2019
HMRC appear to be increasing the pressure on contractors working through Personal Service Companies (PSCs) in the Public Sector; in relation to IR35. It’s only just over a year before IR35 is likely to apply to Medium/Large Private Sector companies. HMRC are aggressively pushing contractors to supply them with information concerning: Compliance of the rules […]
Continue reading →MPs Risk Losing Seats Over IR35
published on Tuesday, December 4th, 2018
According to some recent analysis, the contractor vote could have a significant impact on any forthcoming election. Comparing Office for National Statistics data showing the number of contractors in each constituency, the margins by which the current MP gained office, and survey results showing that 49% of contractors would change their voting intentions away from the incumbent […]
Continue reading →Filed under: IR35 News
Government Departments Encourage IR35 Tax Hike
published on Wednesday, November 28th, 2018
UK Government Departments have encouraged contractors to increase their rates amid serious concerns about the ability to hold on to the 18,000 Digital Contractors in Central Government. HMRC believes that only 10% of the existing 20000 Public Sector Contractors are legitimately declaring themselves Outside IR35. A recent survey showed that only 10% of existing Public […]
Continue reading →Filed under: IR35 News
Companies Engaging Contractors Urged to Prepare for Incoming Tax Reform
published on Friday, November 9th, 2018
Private sector companies are being encouraged to proactively prepare for the IR35 changes scheduled for April 2020. The Private Sector has an opportunity to learn from the mistakes made by Public Sector organisations when the changes were rolled out in April 2017. IR35 Compliance have a range of services that will assist companies with this […]
Continue reading →Filed under: IR35 News, Private Sector
Why Freelancers Will Fuel UK Businesses In The Post-Brexit Economy
published on Thursday, November 8th, 2018
There is major concern within the Tech Industry that the shortage of ‘home-grown’ talent in the software sector will materially affect UK Companies’ ability to meet demand and innovate post-Brexit. The UK government assure industry that they are taking this seriously and the most likely course of action will be to allow Freelancers into the […]
Continue reading →Filed under: IR35 News
Retrospective IR35 Inspections
published on Wednesday, November 7th, 2018
Contractors being placed Inside IR35 at the BBC have been investigated by HMRC for claiming to be Outside IR35, prior to April 2017. The Independent Professionals & Self-Employed organisation are recommending that contractors do not just automatically renew their existing contracts because HMRC are conducting checks of employer records and then using the information gained […]
Continue reading →Filed under: IR35 News
Contractors Refuse Inside IR35
published on Sunday, November 4th, 2018
In response to the MoD issuing letters demanding that contractors join PAYE or leave, 30 people are reported to have left contract roles at the UK Hydrographic Office. Previously, contractors could expect a contract review by the end client. However, the change in policy effectively enforces an Inside IR35 status by applying a blanket policy. […]
Continue reading →Filed under: IR35 News
Private Sector Off-Payroll Expected to Net £3bn
published on Friday, November 2nd, 2018
HMRC expects to net £3bn from the roll out of the IR35 changes to the Private Sector between April 2020 and March 2025. Interestingly, this article suggests that the contractors will pick-up the bill. This is contrary to our experience in the Public Sector where Public bodies reported that it became much harder to recruit […]
Continue reading →Filed under: IR35 News, Private Sector
Judge Rejects CEST Assessment
published on Wednesday, October 17th, 2018
Bad news for those adopting a blanket policy for Inside IR35 determinations based on the Check Employment Status for Tax (CEST) tool. A judge has ruled that a contractor was not employed, as the CEST tool indicated, and that tax and National Insurance contributions deducted at source must be returned to the contractor. The judge […]
Continue reading →HMRC Tax Inspector Criticises CEST Tool
published on Friday, August 10th, 2018
Even HMRC Tax Inspectors are criticising the use of Check Employment Status for Tax tool (CEST) for determining IR35 status. A key component to the changes to the Finance Act, introducing the IR35 changes, moves responsibility for tax due from the fee payer to the client; where reasonable care is not taken. There are a […]
Continue reading →CEST Contradicts Blanket Inside IR35 Determinations
published on Friday, June 1st, 2018
According to HMRC’s own figures, released under a Freedom Of Information (FOI) request, 54% of completed CEST reports have given an Outside IR35 Determination. This goes against the blanket Inside IR35 Assessments given by some Public Sector Bodies; including the NHS & MoD. These results could lead to contractors making a claim against these Public […]
Continue reading →Government Body Withdraws Blanket IR35 Policy
published on Friday, June 1st, 2018
The NHS seems to be reacting to the pressure caused by mass contractor walkouts in response to the blanket Inside IR35 policy. The NHS have been pushing the policy since the change in legislation making Public Sector bodies responsible for IR35 determination. However, NHS Improvement has now agreed that these determinations were not accurate and they […]
Continue reading →Filed under: IR35 News
IR35 Extension to Private Sector to Increase Contractor Rates
published on Saturday, April 21st, 2018
HMRC believe that 90% on contractors incorrectly specify themselves as Outside IR35, arguing the balance should be Inside IR35. There has been a 250% increase in the number of contractors caught by the change in legislation that have increased their rates. Nearly half of the Freelancers in a recent study have left the Public Sector […]
Continue reading →Filed under: IR35 News, Private Sector
Select Committee Told BBC Coerced Staff into Cheating IR35 Rules
published on Thursday, March 22nd, 2018
A number of BBC presenters and staff have stated to a Parliamentary Commons Select Committee for Digital, Culture, Media & Sport that they were coerced into forming Personal Service Companies (PSCs) to side-step employment regulations. In a number of cases the staff claimed that they were unaware of changes in regulations and trusted the BBC […]
Continue reading →Filed under: IR35 News
Inside IR35 Contractors to Demand Employment Benefits
published on Monday, January 28th, 2019
In a recent survey, 89% of contractors said that they would demand employment rights if they were placed Inside IR35. Benefits that they wanted include: holiday pay, sick pay and pension contributions. You can read more.
Continue reading →Filed under: IR35 News