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IR35 Forum

The Office of Tax Simplication (OTS) completed their review of IR35 in time for the March 2011 Budget. Three options were presented to the chancellor for consideration: abolition, better administration, and the introduction of business tests.

Better administration of IR35 was the preferred option, putting to an end any chance that IR35 would be abolished. The government is now committed to reducing the complexity and confusion surrounding IR35, and has set up a dedicated IR35 Forum of specialists from industry and HMRC.

The first meeting of the IR35 Forum took place on 6 May 2011.

Contents:

IR35 Background

What is IR35? Does it apply to your contract?
It is tax avoidance legislation designed to ensure workers using an intermediary but who are ‘disguised employees’ pay the correct amount of tax.

IR35 history & overview
A timeline and oveview of the legislation since it was introduced in April 2000.

IR35 Rules: How to determine if your contract passes - 10 essential points
Signing a contract without checking whether it passes is taking a huge risk. Here’s what to look for before signing the contract.

How to prove IR35 does not apply to you
Want to prove IR35 does not apply to you? Learn the evidence to collect during a contract that will bat away the taxman.

Why contractors caught by IR35 cannot necessarily claim employment rights
Roger Sinclair of Egos dashes the hopes of contractors caught by it claiming employment rights from their clients.

IR35 - Top 10 traps to catch the unwary contractor
HMRC is always on the lookout for contractors who put themselves inside it by making easily avoidable mistakes. Here are the top ten traps to avoid.

Analysis

IR35 Forum – Part 1: Analysing the objectives for IR35’s better administration
In the first of a series of articles analysing options open to the IR35 Forum, ContractorCalculator looks at why IR35 deserves better administration.

IR35 Forum – Part 2: Targeting strategies to segment contractors into IR35 risk bands
In this second of a series of articles analysing options open to the IR35 Forum, ContractorCalculator looks at HMRC’s contractor targeting strategies.

IR35 Forum – Part 3: Better administration of IR35 – so what does that actually mean?
In this third of a series of articles analysing options open to the IR35 Forum, ContractorCalculator examines what better administration looks like.

IR35 Forum – Part 4: ‘In-business’ tests are great idea in theory, not in practice
Contractors in all their variety simply can’t be reduced to tick boxes. In-business tests are great in theory, but will fail contractors in practice.

IR35 Forum – Part 5: How to measure whether IR35 really is being better administered
If HMRC and the Treasury are serious about improving IR35’s administration, they need transparent processes to benchmark and measure performance.

IR35 Tax Calculators

IR35 Calculator
How much does IR35 cost a contractor?

IR35 Taxes Calculator
Compare the taxes for inside and outside IR35?

IR35 Forum - Latest

HMRC’s new IR35-related business entity tests, scenarios & guidance finally launched

HMRC has announced its new IR35 regime which includes the business entity tests, six IR35 risk scenarios and guidance for contractors.

Others | Wednesday, 9 May 2012

HMRC’s business entity tests for contractors may already be unravelling

Concerns are being raised about the scoring and weighting of HMRC’s new business entity tests, which could class most contractors as ‘at risk’.

Others | Wednesday, 4 April 2012

IR35 Forum reveals HMRC to publish IR35 Business Test in April 2012

Contractors learn from the latest IR35 Forum that HMRC intends to publish online its new IR35 Business Test and IR35 risk scenarios in April 2012.

Others | Saturday, 24 March 2012

IR35 Forum: partial breakthrough over risk rules but in-business tests may be looming

The IR35 Forum makes two significant breakthroughs: HMRC will no longer consider contracts in isolation and will publish its general risk indicators.

Others | Wednesday, 23 November 2011

IR35 Forum: HMRC outlines four areas that could offer real IR35 process improvements

Contractors may see real progress at last from the IR35 Forum, as HMRC outlines four key areas for IR35 improvements.

Others | Thursday, 6 October 2011

ContractorCalculator Whitepaper: IR35 - Better administration or enforcement?

The “better administration” of IR35 promised to contractors by Chancellor George Osborne can in practice only mean "better enforcement".

Others | Wednesday, 31 August 2011

IR35 Forum: HMRC admits using “less refined” IR35 targeting criteria in the past

HMRC admits to the IR35 Forum that when targeting contractors for IR35 investigations it has “adopted less refined selection criteria than used now.”

Others | Monday, 1 August 2011

IR35 Forum – Part 3: Better administration of IR35 – so what does that actually mean?

In this third of a series of articles analysing options open to the IR35 Forum, ContractorCalculator examines what better administration looks like.

Others | Thursday, 30 June 2011

IR35 Forum – Part 5: How to measure whether IR35 really is being better administered

If HMRC and the Treasury are serious about improving IR35’s administration, they need transparent processes to benchmark and measure performance.

Others | Wednesday, 29 June 2011

IR35 Forum – Part 4: ‘In-business’ tests are great idea in theory, not in practice

Contractors in all their variety simply can’t be reduced to tick boxes. In-business tests are great in theory, but will fail contractors in practice.

Others | Tuesday, 28 June 2011

IR35 Forum – Part 2: Targeting strategies to segment contractors into IR35 risk bands

In this second of a series of articles analysing options open to the IR35 Forum, ContractorCalculator looks at HMRC’s contractor targeting strategies.

Others | Thursday, 23 June 2011

Contractors face ongoing uncertainty as HMRC proposes broad risk bands to IR35 Forum

Contractors face ongoing uncertainty as the minutes of the first IR35 Forum reveal that HMRC is proposing to segment them in broad bands of IR35 risk.

Others | Monday, 6 June 2011

IR35 Forum – Part 1: Analysing the objectives for IR35’s better administration

In the first of a series of articles analysing options open to the IR35 Forum, ContractorCalculator looks at why IR35 deserves better administration.

Others | Sunday, 5 June 2011

IR35 Forum: Expect "real improvements" for contractors, says recruiter body APSCo

Contractors can expect the IR35 Forum to deliver real improvements, according to Ann Swain of APSCo, the recruiter body that is now part of the forum.

Others | Tuesday, 24 May 2011

External Resources

HMRC - IR35 Forum