What do IR35 reforms entail for compliance contractors?

Coming changes to who determines whether contractors in the private sector fall within the tax law IR35, are the Government’s latest gambit to capture ‘disguised employees’. Caleb Hawkins explains the implications for compliance professionals.

Caleb Hawkins is manager for compliance temporary recruitment at Morgan McKinley (www.morganmckinley.co.uk). Contact him on london@morganmckinley.co.uk.

IR35 is a piece of (misunderstood) tax legislation that came into effect in 2000. It was introduced to combat tax avoidance by workers supplying their services to clients via an intermediary, such as a limited company, but who would otherwise be an employee if the intermediary was not used – ie, disguised employment.