Complete Information About the Changes in IR35 Legislation for 2021
Part 1. What is IR35?
The Intermediaries Legislation, or IR35, was released and executed by HMRC. When does IR35 come into effect? It was originally introduced in the UK in April 2000. It is an anti-avoidance tax rule designed to tax workers that fall within IR35 at a rate same as that of employment.
There were a few amendments made to the rule which were going to come into effect in April 2020. However, due to the coronavirus pandemic, IR35 postponement happened by one year i.e., April 2021. IR35 is also called the ‘off-payroll rules’ wherein the UK government target tax avoidance by workers who operate through a limited firm.
According to the IR35 2021 rule, if a limited company contractor work in a similar way as that of a permanent employee of the end client, then they are lia...