Off-payroll (IR35) ― the notional contract

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Many people supply their services to clients, not directly as a self-employed person, but via a company. The tax and NIC advantages of this way of working are significant. See the Off-payroll working (IR35) for small clients ― overview guidance note.

There is anti-avoidance legislation, known as ‘IR35’, in place which catches individuals who would be employees or office holders of their clients if they did not use an intermediary, see the Establishing employment status guidance note.

This guidance note addresses how particular terms in a contract affect the likelihood of the off-payroll working (IR35) rules applying.

For further reading on the intermediary, see Simon’s Taxes E4.1005.

What is an intermediary?

The legislation uses the term ‘intermediary’ for the person between the worker and the client in the contractual chain. Often this intermediary is a personal service company (PSC), but services provided via any set up, including the intermediary being a partnership or another individual are also within the rules.

The contracts

The off-payroll rules (IR35) apply where a contract of employment or a

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

VAT on property disposals

VAT on property disposalsThis guidance note provides an overview of the VAT treatment of selling property that is located in the UK. The UK includes Great Britain, Northern Ireland and the territorial sea of the UK. The sale of any land or building located outside the UK is outside the scope of UK

14 Jul 2020 13:57 | Produced by Tolley Read more

Personal Tax

Timing of disposal for capital gains tax

Timing of disposal for capital gains taxDate of disposalThe date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.See the

14 Jul 2020 13:50 | Produced by Tolley Read more

Year-end tax planning

Personal Tax

Enterprise management incentive schemes

Enterprise management incentive schemesWhat is an enterprise management incentive (EMI) scheme?The enterprise management incentive (EMI) scheme is a tax-advantaged share option employee incentive scheme aimed at small entrepreneurial companies that meet certain conditions. It is designed to assist

14 Jul 2020 11:36 | Produced by Tolley Read more

��˾��ҹ��