Tax In The UK
Contracting Through A Company
The rules were first proposed in the 1999 Budget press release numbered IR35. They have since become commonly referred to as "IR35".
Detailed information on IR35 is contained at the Inland Revenue website, under 'IR35'. These rules affect many contractors who, would have previously been able to use a company (to contract through) and thereby potentially reduce exposure to income tax and National Insurance Contributions (NICs).
Anyone considering contracting through a company (or other intermediary) in the UK should seriously consider the potential impact of the new IR35 rules, and seek appropriate expert tax advice.
Remember - there will be various adverse tax consequences including penalties and interest if you get this wrong!
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