IR35 change announced

[saptastic]

Government unveils new clause to strengthen IR35 :: Contractor UK

Interesting to see.... "so that IR35 will in future apply to office holders engaged through a third party intermediary, such as a personal services company".

[d000hg]

So income would be taxable as employment income... fair enough.
And presumably then personal NI would be the same as an employee earning the same amount... fair enough.

What about company NI? Do we have to pay that too, or would being IR35 caught in this way mean company NI is forgotten?

[malvolio]

So income would be taxable as employment income... fair enough.
And presumably then personal NI would be the same as an employee earning the same amount... fair enough.

What about company NI? Do we have to pay that too, or would being IR35 caught in this way mean company NI is forgotten?

Sorry?

Nothing has changed regarding IR35, all they have said is that a given group of contractors must assume they are caught by IR35 and account for it as per the rules. And you know what they are, don't you...

[Alan @ BroomeAffinity]

Sorry?

Nothing has changed regarding IR35, all they have said is that a given group of contractors must assume they are caught by IR35 and account for it as per the rules. And you know what they are, don't you...

If this is the only change then for the majority of contractors it's business as usual, whether that's operating their freelance company with a good working knowledge of IR35, or blithely ignoring IR35 altogether.

[imightbewrong]

" by extending it to limited company contractors who are ‘office holders’ of their clients."

I may regret asking this, but what is an 'office holder' in this context?

[theonewho]

" by extending it to limited company contractors who are ‘office holders’ of their clients."

I may regret asking this, but what is an 'office holder' in this context?

Wondering the same thing, I thought it meant prominant positions such as Directors and senior civil servants, not your admin and project types in the public sector. I believe Police officers are office holders?

[Nixon Williams]

" by extending it to limited company contractors who are ‘office holders’ of their clients."

I may regret asking this, but what is an 'office holder' in this context?

This clause is aimed at very senior 'contractors' who work in some companies/organsiations.

You may recall that Ed Lester CEO of the Student Loan Company was found to be using his own company and after alot of shouting, the Government has decided to effectively ensure that any such office holders will be subject to IR35.

Office holders would apply to directors and company secretaries of client companies. It will not apply if you are simply a director of your own limited company.

Alan

[malvolio]

This clause is aimed at very senior 'contractors' who work in some companies/organsiations.

You may recall that Ed Lester CEO of the Student Loan Company was found to be using his own company and after alot of shouting, the Government has decided to effectively ensure that any such office holders will be subject to IR35.

Office holders would apply to directors and company secretaries of client companies. It will not apply if you are simply a director of your own limited company.

Alan

WAS

Also it is fixing a minor anomaly in NIC treatments between ITEPA and IR35.

[imightbewrong]

Right - thanks guys.

[d000hg]

Sorry?

Nothing has changed regarding IR35, all they have said is that a given group of contractors must assume they are caught by IR35 and account for it as per the rules. And you know what they are, don't you...

Since I'm not IR35 caught, I don't know precisely what I'd have to do if I was. What IS the answer - I always understood you had to pay BOTH sides of NI but the CUK article says it seeks to level how contractors' and employees' earnings are treated.

If this is the only change then for the majority of contractors it's business as usual

Ah, my mistake - I'd not noted "office holders [of client outfits]".