Doing IR35 research? We list every major event in the history of the IR35 tax legislation since it was introduced in 1999 and subsequently came into force in April 2000.
“IR35” is a piece of tax legislation announced in 1999, which took effect from April 2000. (See What is IR35?)
The legislation means that HMRC can tax some contractors as though they are employees of their clients. For those caught it means paying significantly more tax.
This is a list of list provides an IR35 overview and lists the key events in the history of IR35.
View each years key events: 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999
1999 - IR35 History
| Event | Date | Detail |
|---|---|---|
| IR35 measures announced. | Mar 1999 |
Initial HMRC IR35
press release announcing the measures to counter tax avoidance in the
area of personal service provision with the intention of them taking effect
from April 2000. |
| PCG formed. | May 1999 |
PCG formed to combat the IR35 proposals. |
| Modified IR35 measures announced. | Sep 1999 |
Second press release
detailing a modified
approach based on consultations:
- onus on the service companies to follow rules; service companies to collect the tax rather than the clients. Existing tests for self employment to be used. Flat rat of 5% allowed for non Schedule E expenses. |
|
Passed in Commons. |
Nov 1999 |
After peers backed
down, the
Welfare Reform and Pensions Bill (which contained IR35) passed in the
house of Lords. |
2000 - IR35 History
| Event | Date | Detail |
|---|---|---|
| Revenue publishes IR35 guidance. | Feb 2000 |
HMRC publishes FAQs
for IR35. |
| IR35 becomes law. | Apr 2000 |
Finance Act published
– schedule 12
being specific to IR35. |
2001 - IR35 History
| Event | Date | Detail |
|---|---|---|
| Judicial Review | Mar - Apr 2001 |
PCG took HMRC to a
Judicial Review.
High Court dismissed the PCG and IR35 remained law. |
| First IR35 case loses. | Aug 2001 |
Battersby versus Campbell.
First case to go before Special Commissioners is lost. |
| Second IR35 case loses. | Dec 2001 |
F S Consulting Limited vs McCaul.
Second case to go before Special Commissioners is lost. |
| Judicial Review - Appeal | Dec 2001 |
Judges dismiss appeal by PCG. |
2002 - IR35 History
| Event | Date | Detail |
|---|---|---|
| PCG focuses on case law | Jan 2002 |
PCG drops legal fight with HMRC to focus on case law. |
| First IR35 case won. | Oct 2002 |
Lime IT vs Justin
First case to be won at the Special Commissioners. |
2003 - IR35 History
| Event | Date | Detail |
|---|---|---|
| IR35 case lost at High Court | Mar 2003 |
Synaptek vs Young. |
2004 - IR35 History
| Event | Date | Detail |
|---|---|---|
| IR35 case lost | Jan 2004 |
Usetech vs Young. |
2005 - IR35 History
| Event | Date | Detail |
|---|---|---|
| Tories Propose Abolishment. | Jan 2005 |
Tories Propose Abolishment of IR35. |
| Freelancer Loses Case. | Jan 2005 |
Freelancer Loses IR35 Case..
Netherlane Limited loses at the Special Commissioners. |
| PCG wins freelancer case as special commissioners. | May 2005 | PCG wins case for Mike Ansell |
2006 - IR35 History
| Event | Date | Detail |
|---|---|---|
| Court of Appeal status ruling on employment status. | Mar 2006 |
Cable and Wireless v Muscat
Concerns that contractors could start to claim employment rights. PCG Analysis of Cable and Wireless v Muscat Judgement Fears over Muscat bite |
2007 - IR35 History
| Event | Date | Detail |
|---|---|---|
| Island Consultants Ltd lose IR35 case to Revenue. | Jul 2007 |
Island Consultants lose IR35 Case
Island Consultants Ltd V Revenue & Customs No IR35 Precedent Set, Experts Say |
| Conservative John Redwood says Tories will "Turn back the clock on IR35 and MSC's" | Aug 2007 |
Redwood: "We will Turn Back the Clock Entirely on IR35 and MSC"
|
2008 - IR35 History
2009 - IR35 History
| Event | Date | Detail |
|---|---|---|
| Official figures showing that IR35 only brings in about £1.5 million each year | May 2009 | PCG’s revelation of IR35’s £1.5m per year tax take is (sadly) not the full story
|
|
Tilson ruling: Contractors inside IR35 and employment rights
Tilson ruling is overturned on appeal Tilson loses appeal. |
July 2009
Feb 2010 Nov 2010 |
Contractors inside IR35 may be able to claim employment rights after landmark ruling
Contractor ‘employment’ status clarified as Tilson ruling is overturned on appeal Contractor’s bid for employment rights denied as Tilson loses Tilson v Alstom appeal |
| Stringer v HMRC: Clients should now be more supportive on contractors IR35 status | Aug 2009 | Contractors holiday pay ruling should make clients more supportive on IR35 status
|
| IR35 special report: 10 years that shook the world of UK contractors | Nov 2009 | Contractor Calculator publishes 10 year anniversary special about the IR35 legislation containing key insights from 10 industry experts.
|
2010 - IR35 History
| Event | Date | Detail |
|---|---|---|
| PCG lobbying gains contractors Tory commitment to “review” IR35 | Mar 2010 | PCG lobbying gains contractors Tory commitment to “review” IR35
|
| Larkstar leaves grim legacy for contractor IR35 status, despite HMRC closing case | Apr 2010 | Larkstar leaves grim legacy for contractor IR35 status, despite HMRC closing case
|
| Contractors cheering “staggering” Novosoft IR35 ruling are likely to be disappointed | May 2010 | Contractors cheering “staggering” Novosoft IR35 ruling are likely to be disappointed
|
| IR35 review promised by new Office of Tax Simplification (OTS) | Jul 2010 | OTS review of IR35
|
| Free online employment status test launched by Contractor Calculator to enable contractors to evaluate their IR35 status | Aug 2010 | IR35 Test for contractors
|
| Amendments to IR35 unlikely until April 2012 says expert | Sep 2010 | Amendments to IR35 unlikely until April 2012 says expert
|
| Employment rights denied - Tilson loses appeal | Nov 2010 | Employment rights denied as Tilson loses Tilson v Alstom appeal
|
| Contractor Calculator publishes IR35 solutions series: Review of current legislation and future options | Dec 2010 | IR35 Solutions series [5 parts]
|
2011 - IR35 History
| Event | Date | Detail |
|---|---|---|
| Disguised employment (IR35) crackdown launched in USA | Jan 2011 | Disguised employment (IR35) crackdown launched in USA
|
|
Tribunal win for MBF Design Services confirms importance of MOO
MBF Design Services v HMRC – key facts from the case |
Jan 2011 | IR35 Tribunal win for MBF Design Services confirms importance of MOO
MBF Design Services v HMRC – key facts from the case |
| Contractor Calculator publishes IR35 Solutions Whitepaper | Jan 2011 | IR35 Solutions: Review of the current legislation and future options
|
| IR35 Review by OTS: suspend or enforce IR35 better | Mar 2011 | OTS says suspend IR35 or enforce it better, then merge income tax and NI
|
| Budget: IR35 to be "better administered" - not abolished | Mar 2011 | Budget document reveals IR35 is to be "better administered"
|
| ECR Consulting wins IR35 case after five-year battle | May 2011 | ECR Consulting wins IR35 case after five-year battle with HMRC
|
|
Marlen Ltd. wins IR35 case against HMRC
Contractor pursued by HMRC despite failing all key employment tests |
July 2011 | Marlen Ltd. wins IR35 case against HMR
Marlen IR35 case: contractor pursued by HMRC despite failing all key employment tests |
|
IR35 victory for Primary Path Ltd against HMRC
HMRC was predestined to lose case offering important lessons |
July 2011 |
IR35 victory for Primary Path Ltd against HMRC
HMRC was predestined to lose case offering important lessons |
|
Partial victory for JLJ Services v HMRC
Contractor avoids £141,000 tax bill with partial victory in IR35 tribunal ruling Key facts overlooked in JLJ Services ruling |
Dec 2011 |
IR35 ruling: Partial victory for JLJ Services v HMRC
Contractor avoids £141,000 tax bill with partial victory in IR35 tribunal ruling Key facts overlooked in JLJ Services IR35 ruling: contractor ‘sets record straight’ |
2012 - IR35 History
| Event | Date | Detail |
|---|---|---|
|
Public sector targeted:
Public sector contractors deserve recognition, not witch-hunt Public sector contractors need proof of IR35 status to avoid inspection Media & entertainment contractors face new employment status tests IR35 legislation changed to remove exemption of contractors working as office holders 94% of public sector contractor off-payroll contracts are ‘legitimate’ |
Feb 2012 Oct 2012 Nov 2012 Dec 2012 Mar 2014 |
Public sector contractors deserve recognition, not a witch-hunt Public sector contractors need IR35 proof to avoid inspection Media & entertainment contractors face employment status tests IR35 legislation - office holders no included 94% of public sector contractor off-payroll contracts are ‘legitimate’ |
|
HMRC IR35 Processes and Framework:
IR35 risk profiles future of compliance campaign Business Entity Tests (BETs) for contractors No certainty from HMRC’s new IR35 framework Contractors face at least two years of the current business entity tests (BETS) |
Mar 2012 April 2012 May 2012 Aug 2012 |
IR35 risk profiles future of HMRC IR35 compliance IR35 Business Entity Test for contractors – process and questions No certainty from HMRC’s new IR35 framework Contractors face two years of the current tests |
| Contractors may have more client clarity and less IR35 risk after Autoclenz ruling | July 2012 | Contractors may have more clarity after Autoclenz
|
2013 - IR35 History
| Event | Date | Detail |
|---|---|---|
| House of Lords PSC inquiry: | ||
| Limited companies and IR35 to be investigated by Lords | Nov 2013 | IR35 to be investigated by Lords Select Committee |
| IR35 and limited companies dominate hearing | Nov 2013 | IR35 and limited companies dominate hearing |
| IR35 needs 3000 inspectors to be policed properly | Dec 2013 | IR35 needs 3000 inspectors to be policed properly |
| Lords slam IR35 - benefits are unproven | April 2014 | Lords slam IR35 - benefits unproven and HMRC should review |
2014 - IR35 History
| Event | Date | Detail |
|---|---|---|
| Contractors being forced out of Ministry of Justice by new IR35-unfriendly contracts | Mar 2014 | Contractors forced out of Ministry of Justice by IR35-unfriendly contracts |
| New IR35 data confirms HMRC is wasting taxpayers’ cash | June 2014 | New IR35 data confirms HMRC is wasting taxpayers’ cash |
| IR35 Forum minutes: business entity tests aren’t working and should be abolished | Sep 2014 | IR35 Forum minutes: business entity tests aren’t working and should be abolished |
| IR35 taxes uncollectable if contractors’ company has no money | Oct 2014 | IR35 taxes uncollectable if contractors’ company has no money |
| HMRC abolishes the IR35 Business Entity Tests (BETs) | Oct 2014 | HMRC abolishes Business Entity Tests |
| IR35 whitepaper published - 15 years of IR35 | Nov 2014 | Contractor Calculator Whitepaper: IR35 after 15 years |
2015 - IR35 History
| Event | Date | Detail |
|---|---|---|
| IR35 Forum Administration Review highlights no progress made | Jan 2015 | IR35 Forum Administration Review highlights no progress on administering IR35 |
| IR35 2013-14 tax yield collapses | Feb 2015 | IR35 2013-14 tax yield collapses |
| IR35 could become irrelevant if OTS Employment Status Review solutions are adopted | March 2015 | IR35 could become irrelevant |
| HMRC IR35 case capacity revealed as only 250 | March 2015 | HMRC IR35 case capacity revealed as only 250 |
| IR35 is highly complex and expensive - says OTS | Jul 2015 | IR35 is highly complex and expensive - says OTS |
| IR35 should be abolished but engagers pay NICs, says expert David Kirk | Aug 2015 | IR35 should be abolished but engagers pay NICs, says expert David Kirk |
| IR35 will not change until April 2017, confirms HMRC | Dec 2015 | IR35 will not change until April 2017, confirms HMRC |
2016 - IR35 History
| Event | Date | Detail |
|---|---|---|
| IR35 public sector consultation released | May 2016 | IR35 public sector consultation released |
| HMRC’s planned IR35 tool is impossible, claims expert | Jul 2016 | HMRC’s planned IR35 tool is impossible, claims expert |
| 100+ BBC presenters could face huge tax bills following mass IR35 clampdown | Oct 2016 | 100+ BBC presenters could face huge tax bills following mass IR35 clampdown |
| Autumn Statement 2016: Major IR35 reforms to go ahead | Nov 2016 | Autumn Statement 2016: Major IR35 reforms to go ahead |
2017 - IR35 History
| Event | Date | Detail |
|---|---|---|
| New IR35 book launched - Beat IR35 | Jan 2017 | New IR35 book launched - Beat IR35 |
| IR35Shield.co.uk launched - IR35 test tool | Date | IR35 assessments now available |
| HMRC ESS tool has no legal authority, says IR35 legal expert | March 2017 | HMRC ESS tool has no legal authority, says IR35 legal expert |
| Experts slam logic underlying the HMRC IR35 tool | Jun 2017 | Experts slam logic underlying the HMRC IR35 tool |
| Eight ‘outside IR35’ assessments not enough to secure NHS consultant outside contract | Oct 2017 | Eight ‘outside IR35’ assessments not enough to secure NHS consultant outside contract |
| HMRC deliberately omitted key IR35 case law from CEST tool | Oct 2017 | HMRC deliberately omitted key IR35 case law from CEST tool |
| IR35 private sector rollout – consultation announced | Nov 2017 | IR35 private sector rollout – consultation announced |