(The rules will remain unchanged in the private sector.) The intermediaries legislation, often known as IR35, was introduced to make sure that people who do the same job in the same manner pay broadly similar amounts of income tax and National Insurance, whether they’re employed directly or they work through an intermediary, such as their own limited company. There is evidence of widespread non-compliance with the legislation.
HMRC has launched a consultation which sets out proposals to reform the intermediaries legislation where people work in the public sector through their own limited companies (known as personal service companies). This reform will improve the effectiveness of the rules in the public sector. The closing date for comments is 18 August 2016.
Click here to access the consultation document
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