Philip M Collis, FFA
Incorporated Financial Accountant
Qualified and Registered Freelance Bookkeeper and Accountant offering bookkeeping and accounting
services in East London, Essex and South Suffolk, including Colchester, Ipswich, Manningtree, Harwich, Dovercourt, Clacton, Felixstowe and surrounding areas.
Employed or self employed?
The aim of the legislation is to eliminate the avoidance of tax and National Insurance Contributions (NICs) through the use of intermediaries, such as Personal Service Companies or partnerships, in circumstances where an individual worker would otherwise -
The legislation ensures that, if the relationship between the worker and the client would have been one of employment had it not been for an intermediary the worker pays broadly tax and NICs on a basis which is fair in relation to what an employee of the client would pay.
On 6 April 2007 Chapter 9 ITEPA 2003, more commonly known as the Managed Service Company (“MSC”) Legislation, was introduced. The MSC Legislation applies to individuals providing their services through intermediaries which meet the definition of a Managed Service Company.
An intermediary must consider whether the MSC Legislation applies before considering IR35. Intermediaries that do not meet the definition of an MSC must continue to consider IR35.
The interactive Employment Status Indicator (ESI) tool, available to both employers and workers to check that their employment status for tax and NICs is correct, has been updated and improved.
Employers may rely on the results indicated by the ESI tool if both
Further information click here : Employment Status Indicator
Intermediaries Legislation (IR35) Business entity tests - Example scenarios
This is an HMRC pdf booklet.
Where are we now? An IR35 expert’s view