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IR35 for the Private Sector: Perspectives from Employment Law and Tax

The ‘IR35’ rules, introduced in 2017 were designed to prevent the avoidance of tax and National Insurance contributions (NICs) through the use of personal service companies (PSCs) and partnerships. The rules have been in situ since April 2017 for PSCs who provide their services to the public sector.

From 6 April 2021, IR35 was expanded to include individuals who provide their personal services via a personal service company (‘PSC’) to medium or large private businesses. An intermediary may be another individual, a partnership, an unincorporated association or a company.

On 23 November 2021, Mitchell Charlesworth’s Director of Tax Phil Hartley and DTM Legal’s Senior Associate Elizabeth Judson delivered a seminar addressing some key issues that IR35 brings from both a tax and employment law perspective.  It was an interesting session that probed the legislation both from an employment law and tax perspective, and as a result of which we have developed “IR35 – Perspectives from HMRC and Employment Law”* which is a high-level review of where we currently are, and answers questions such as:

  • What is the employment status of a consultant from an employment law perspective?
  • What tests do HMRC and employment tribunals use to determine employment status?
  • What are the three tests that determine employment status from HMRCs perspective?
  • What is the CEST tool?
  • Implications for both hirers and sub-contractors if found to be within IR35.

You can download a version to the right of this page.

If you have any questions or queries please don’t hesitate to contact Phil or Elizabeth.

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IR35 for the Private Sector:

Perspectives from Employment Law and Tax

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