IIR35 legislation isn’t new, it came into force in 2000 as a means for HMRC to collect taxes from what they call “disguised employees”. HMRC were concerned that contractors acting through intermediaries were avoiding paying employment taxes.
In fact, even the way contractors are classified; as ‘inside IR35’ or ‘outside IR35’ and the significance of those classifications has been around since 2000. Where a contractor is caught inside IR35 they must pay PAYE deductions and where they are outside, their PSC is deemed a genuine business that provides services to your organisation.
There's one significant difference to how IR35 legislation will work after April 6th. Download our definitive guide to understand the implications of the changes for you and your workforce.Download the Definitive Guide to IR35