Self-confessed \u2018IR35 addict\u2019 Dave Chaplin takes a tongue-in-cheek look at the bizarre world he\u2019s inhabited for the past 20 years.<\/p>\n\n\n\n
Do you know the subtle differences between the driver of a cement mixer, an exotic dancer, a housekeeper, a plumber, a car washer, Catholic school boarders, a hotel waiter, a football referee, Polish nationals or indeed a caravan park in South Wales? No, well unfortunately I do. Let me try and explain my world \u2013 IR35.
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Just over 20 years ago the then Labour Government dreamt up the idea that everyone should be assessing their relationships with their clients, to establish if really they are only \u2018employed for tax purposes\u2019 \u2013 which means tax should be paid like an employee, but without actually being an employee. Makes perfect sense, right? This came in under the banner of \u2018IR35\u2019 in April 2000, where contractors running limited companies had to ask themselves the status question, the result of which could see them losing 25% of their income, and they unsurprisingly concluded it didn\u2019t apply to them. Who could have guessed?<\/p>\n\n\n\n
HMRC tried to enforce this through the courts and found they could only win less than half of cases, and for a long period gave up even trying. Then, in 2016, HMRC thought it would be a good idea to get businesses to ask the status question instead and renamed the now-toxic brand of IR35 as \u2018Off-payroll Working\u2019. It was introduced in April 2017, all under the waving banner of \u201ctax fairness\u201d.
This time it was the Conservative Party, tasked by the Treasury, to introduce more madness \u2013 whereby they had to convince everyone it was a good idea to oil the wheels of industry by making firms try to solve the equivalent of the Rubik’s Cube blindfolded every time they wanted to hire someone urgently. What could go wrong? So they gave 60,000 businesses, hiring over half-a-million contractors, the perilous task of conducting status determinations.<\/p>\n\n\n\n
But this status stuff is easy, right? One just has to examine the relationship between the worker and the firm they work for and determine if it\u2019s one of \u2018disguised employment\u2019 or not. Piece of cake \u2013 let me explain how you munch your way through it.<\/p>\n\n\n\n
Read the full article below:<\/p>\n\n\n\n
Self-confessed \u2018IR35 addict\u2019 Dave Chaplin takes a tongue-in-cheek look at the bizarre world he\u2019s inhabited for the past 20 years. Do you know the subtle differences between the driver of a cement mixer, an exotic dancer, a housekeeper, a plumber, a car washer, Catholic school boarders, a hotel waiter, a football referee, Polish nationals or […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[],"class_list":{"0":"post-1243","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-october-november-2021"},"_links":{"self":[{"href":"https:\/\/taxinvestigation.co\/new\/wp-json\/wp\/v2\/posts\/1243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxinvestigation.co\/new\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxinvestigation.co\/new\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxinvestigation.co\/new\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/taxinvestigation.co\/new\/wp-json\/wp\/v2\/comments?post=1243"}],"version-history":[{"count":1,"href":"https:\/\/taxinvestigation.co\/new\/wp-json\/wp\/v2\/posts\/1243\/revisions"}],"predecessor-version":[{"id":1245,"href":"https:\/\/taxinvestigation.co\/new\/wp-json\/wp\/v2\/posts\/1243\/revisions\/1245"}],"wp:attachment":[{"href":"https:\/\/taxinvestigation.co\/new\/wp-json\/wp\/v2\/media?parent=1243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxinvestigation.co\/new\/wp-json\/wp\/v2\/categories?post=1243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxinvestigation.co\/new\/wp-json\/wp\/v2\/tags?post=1243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}