The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:
Many people supply their services to clients, not directly as a self-employed person, but via a company. The tax and NICs advantages of this way of working are significant. See the Introduction to personal service companies guidance note.
Since April 2000, anti-avoidance legislation, known as ‘IR35’, catches individuals who would be employees of their clients if they didn’t use a service company. See the Employed or self-employed guidance note.
Separate legislation exists for tax and NICs. In most cases both sets of legislation produce the same outcome, but not invariably. See the Other points on personal service companies guidance note for more information.
To be within IR35:
ITEPA 2003, s 49
Contracts which fall within IR35 are called ‘relevant engagements’ in the legislation.
Engagements for the provision of goods, rather than services, are completely outside IR35. Sole traders are also excluded, because there is no intermediary. Services provided via a
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