Orange & Gold Blog

IR35 and personal service companies

The IR35 rules are designed to prevent the avoidance of tax and NICs by the use of an intermediary company owned by the "employee". The Coalition Agreement promised a review of these complex rules with a view to replacing it "with simpler measures that prevent tax avoidance but do not place undue administrative burdens or uncertainty on the self-employed, or restrict labour market flexibility."

The HM Treasury Budget Report confirms the Governments commitment to a review of IR35 and small business tax and will release further details shortly.