IR35 Information for Contractors

Intermediaries legislation (known as IR35) is the tax and National Insurance contributions legislation that may apply if you’re working through an intermediary (such as an umbrella company or personal service company).

If IR35 applies, all payments to the intermediary are treated as your employment income and the intermediary must pay any tax and National Insurance contributions due. It ensures that you pay roughly the same amount of tax and National Insurance contributions as if you’d been directly employed by the client.

The intermediary is always responsible for ensuring compliance with the IR35 legislation when it applies. As a director of your limited company or a member of your partnership, you must ensure compliance with all relevant legislation, and take responsibility for determining whether IR35 applies for each of your engagements or not.

There can be significant consequences of ignoring IR35 legislation. Interest and penalties may be charged on any additional tax and National Insurance contributions due as a result of an HM Revenue and Customs (HMRC) enquiry into your situation.

Please follow the link below for upto date HMRC information on IR35.

www.gov.uk/guidance/ir35-find-out-if-it-applies

 

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