IR35

A rule (first proposed in a news release numbered IR35) to stop the avoidance of tax and National Insurance contributions (NICs) by using intermediaries (typically a service company owned by the "employee"). The intermediary is required to pay tax and NICs through the pay as you earn (PAYE) system. For further information, see Practice note, IR35.

With effect from 6 April 2017 (for public sector engagements) and 6 April 2021 (for prescribed private sector engagements), the off-payroll working rules in Chapter 10 of Part 2 of ITEPA 2003 rather than the IR35 rules in Chapter 8 of Part 2 of ITEPA 2003 govern the tax treatment of payments made to workers that supply their services through relevant intermediaries. For further information, see