![THE IMPACT OF IR35 REFORMS](https://magarticles.magzter.com/articles/5307/426953/5e81b4447d058/THE-IMPACT-OF-IR35-REFORMS.jpg)
In 2000 a new piece of tax law was introduced called IR35. It was designed to stop tax avoidance and prevent companies from hiring someone through a limited company, rather than employing them directly and ensuring they pay the appropriate National Insurance and income tax.
On 6 April 2020, new IR35 reforms come into effect in the private sector. From then onwards the onus will be on medium/ large companies to ensure any contractors who provide services to them through a limited company or personal services organisation (PSC) are paying the correct amount of tax.
Previously, it was down to the contractors to determine their status as ‘outside IR35’ (so not a disguised employee ie they pay themselves a salary, dividends and pay corporation tax from profit), or ‘inside IR35’ and liable for a client’s employment tax.
DO I NEED LEGAL ADVICE?
If you employ hundreds of contractors or freelancers to deliver work on a shortterm contract, there is a huge amount of work in determining whether every one of them is working inside or outside IR35.
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Denne historien er fra May 2020-utgaven av NET.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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![Camille Gribbons](https://reseuro.magzter.com/100x125/articles/5307/436389/5ea19367af754/crp_Camille-Gribbons.jpg)
Camille Gribbons
UX designer at Booking.com, Camille Gribbons reveals how she first got into the industry
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ANDREW COULDWELL
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Top 5 Tips For Ensuring Web Content Is Accessible For All
Merlyn Meredith outlines five top tips for ensuring web content is accessible for all
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WHAT DOES THE FUTURE HOLD FOR BROWSERS?
Nico Turco examines the state of play with browsers, whether developers should encourage diversity or monopoly and how Google fits into it all
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YEARS IN THE MAKING
Exclusively for net: The latest in a series of anonymous accounts of nightmare clients