Wednesday, September 17, 2025
  • About
  • Write for us
  • Contact
Today News
  • Business
  • Tech
    AI chip on a sleek black background, symbolizing advanced artificial intelligence technology.

    How AI Can Optimise Cash-Out Functionality

    Illustration of AI technology transforming the workplace, showcasing robots and humans collaborating on tasks.

    NSFW AI Generator from My Dream Companion Redefines Visual Storytelling

    Nano Banana

    Nano Banana: Google’s Game-Changing AI Image Tool with Amazing Consistency

    Mental Health

    Mental Health Barriers Older Adults Face Due to Social Stigma

    Man typing on a laptop computer, focused on his work in a well-lit environment.

    The Coming Flatine Beep of AOL’s Dial Up Service – Are There People Still Using Dial Up?

    ChatGPT

    India’s IT Sector Embraces ChatGPT Alternatives: The Rise of Specialized AI Chatting Tools

    Digital Transformation

    The Role of Drupal in the UK’s Public Sector Digital Transformation

    Looking out from a window at a vibrant UK city street, with vehicles and people navigating the urban landscape.

    Smart Transport: AI Solutions for UK’s Urban Mobility Challenges

    AI Agents

    5 Tips for Using AI Agents in the Best Possible Way

  • Consumer
    Understanding the Baby Monitor Market: What’s Driving Growth and Innovation

    Understanding the Baby Monitor Market: What’s Driving Growth and Innovation

    Craving Connection: Why Food Gifting Is the New Love Language

    Craving Connection: Why Food Gifting Is the New Love Language

    How to Celebrate Milestones from Afar: The Rise of Digital Gifting in the UK

    How to Celebrate Milestones from Afar: The Rise of Digital Gifting in the UK

    How to adjust glasses at home – a step-by-step guide!

    How to adjust glasses at home – a step-by-step guide!

    Why quality toilet cubicle hardware matters

    Why quality toilet cubicle hardware matters

    Common Mistakes in KYC Identity Verification

    Common Mistakes in KYC Identity Verification

    Consumer habits

    British Furniture Market Sees Significant Changes in Consumer Preferences

    Why are high-street bookmakers declining in the UK?

    Why are high-street bookmakers declining in the UK?

    Straps for smartwatches: The Complete guide

    Straps for smartwatches: The Complete guide

  • Finance
    Visual guide on starting a business plan, highlighting key accounting and finance elements for new entrepreneurs.

    Finance vs accounting: Key differences and career paths

    The Role of Blockchain in Sports Beyond Cryptocurrency

    The Role of Blockchain in Sports Beyond Cryptocurrency

    Smartphone displaying a stock chart with fluctuating lines and data points.

    CHIPS Act Shake-Up: How Washington’s Plan Impacts Tech and Industry Stocks

    sifx.com: What’s Behind the Growing Buzz Among Traders?

    sifx.com: What’s Behind the Growing Buzz Among Traders?

    Georgia’s Free Industrial Zones (FIZ): A Strategic Choice for Crypto Businesses?

    Georgia’s Free Industrial Zones (FIZ): A Strategic Choice for Crypto Businesses?

    Senior Citizen in a wheelchair

    How to Support and Manage Your Parents’ Financial Decisions Through Dementia

    Mobile Apps for Managing Finances: What to Choose in 2025

    Mobile Apps for Managing Finances: What to Choose in 2025

    Bank Branch Presence in the UK: Then and Now

    Bank Branch Presence in the UK: Then and Now

    Financial graph illustrating investment performance

    Tradock Explained | What This Trading Platform Offers

  • Environment
    Five Ocean Discoveries That Could Change How We See the World

    Five Ocean Discoveries That Could Change How We See the World

    Choosing the Right Sustainability Partner: How Eco-Efficient Tech Transforms Industry

    Choosing the Right Sustainability Partner: How Eco-Efficient Tech Transforms Industry

    Moving Abroad? Here’s What to Expect – and Why Cardboard and Plastic Waste Removal Is Essential After Unpacking

    Moving Abroad? Here’s What to Expect – and Why Cardboard and Plastic Waste Removal Is Essential After Unpacking

    How Weather Events Like Heavy Rain or Heatwaves Affect Pest Activity

    How Weather Events Like Heavy Rain or Heatwaves Affect Pest Activity

    Building a Carbon-Competitive Advantage with Sustainability and Decarbonization Consulting

    Building a Carbon-Competitive Advantage with Sustainability and Decarbonization Consulting

    The Lost Art of Orienteering: Why Map and Compass Skills Still Matter

    The Lost Art of Orienteering: Why Map and Compass Skills Still Matter

    Sustainability in Dining: Reducing Waste for a More Profitable Future

    Sustainability in Dining: Reducing Waste for a More Profitable Future

    Environmental Benefits

    What Are The Environmental Benefits Of Choosing Eco-friendly Rubbish Removal In Croydon?

    Why You Should Hire Waste collectors for efficient waste removal

    Why You Should Hire Waste collectors for efficient waste removal

  • Property
    Red door labeled "Fire Exit Keep Clear," indicating it should remain unobstructed for safety.

    Fire door compliance: Essential considerations for contractors and housebuilders

    Furnished Apartments

    London Serviced Apartments: A Growing Trend Among Modern Travellers

    Close-up of Bungalow Houses

    The Key Reasons Park Bungalows Are A Smart Investment

    Discovering the Charlie Oven The Rural Ranges Ltd Approach

    Discovering the Charlie Oven The Rural Ranges Ltd Approach

    Sleek and Sturdy Bathroom Glass Shelves for Modern Homes

    Sleek and Sturdy Bathroom Glass Shelves for Modern Homes

    How to Streamline Your Home Expenses

    How to Streamline Your Home Expenses

    How To Plan Your Home Improvements in Six Easy Steps

    How To Plan Your Home Improvements in Six Easy Steps

    Budgeting for a House Sale: What Most Sellers Forget

    Budgeting for a House Sale: What Most Sellers Forget

    Home and business removals: Streamlining your move

    Home and business removals: Streamlining your move

  • eCommerce
    Ecommerce Platform

    What Makes a Global Ecommerce Platform User-Friendly

    From 1688 to shopee: the singaporean seller’s guide to paying china suppliers

    From 1688 to shopee: the singaporean seller’s guide to paying china suppliers

    The Importance of Digital Valuations for UK Ecommerce Brands

    The Importance of Digital Valuations for UK Ecommerce Brands

    Blink-and-Buy: Designing Checkouts That Convert in Under 10 Seconds

    Blink-and-Buy: Designing Checkouts That Convert in Under 10 Seconds

    High Stakes Strategies: Lessons E-commerce Entrepreneurs Can Learn from Casinos

    High Stakes Strategies: Lessons E-commerce Entrepreneurs Can Learn from Casinos

    Amazon Expert

    Amazon Expert: Key Qualifications to Look For

    Boosting Ecommerce Revenue with Smart Targeting Strategies

    Boosting Ecommerce Revenue with Smart Targeting Strategies

    Personalized Shopping: How Technology is Transforming Retail

    Personalized Shopping: How Technology is Transforming Retail

    How Can Ecommerce Businesses Learn From Entertainment Platforms?

    How Can Ecommerce Businesses Learn From Entertainment Platforms?

No Result
View All Result
Today News
Home Finance

Don’t skip that IR35 issue this tax season

David Prior by David Prior
March 8, 2022
Reading Time: 3 mins read
Don’t skip that IR35 issue this tax season
231
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Make sure that ir35 accountant is on point with Pearl Lemon Accountants. Several pieces of tax-avoidance legislation are set to change in the near future and that has the potential to affect small businesses and freelancers alike. 

Even though the coronavirus caused the schedule to be pushed back, the new rules on IR35 will still apply to private employers starting in April 2021. Small businesses and contractors will be hit equally by the tax increases, according to the Federation of Small Businesses.

Related posts

Visual guide on starting a business plan, highlighting key accounting and finance elements for new entrepreneurs.

Finance vs accounting: Key differences and career paths

September 16, 2025
462
The Role of Blockchain in Sports Beyond Cryptocurrency

The Role of Blockchain in Sports Beyond Cryptocurrency

September 12, 2025
566

How does IR35 work?

What is IR35? Also known as the “off-payroll working rules”, IR35 governs individual contractors. As a result of IR35, contractors cannot work under the guise of contractors while actually they are employees.

If a contractor is operated through his or her own limited company, then the contractor is treated similarly to employees of the client and will be considered as being in IR35, which means additional taxes will have to be paid.

How has IR35 changed recently?

In 1981, Gordon Brown introduced IR35, in an attempt to prevent employers from being able to avoid tax by treating employees as contractors. 

It has become notorious however as HMRC has sometimes accused businesses of hiring contractors improperly – even when they thought they were doing so.

Employers in the private sector will need to determine whether IR35 applies to contractors they hire – and will have to treat those contractors as employees for tax purposes after April 2021. The public sector already does so.

Consequently, businesses in the private sector will have to decide what to do: either treat contractors as contractors with the risk of hefty fines from HMRC – or treat them as employees, which comes with increased costs and responsibilities. 

Genuine contractors are concerned that they will be classified as employees, and therefore be subject to unfair taxation, or lose their contracts entirely.

Do you fall within or outside IR35?

There are differences in treatment between employees and contractors, which led to the introduction of IR35. An employer must pay the employer’s National Insurance contributions and provide an employee with a pension, paid holidays, sick pay, and other benefits (perhaps). 

In contrast, contractors are paid a flat fee and can be dismissed easily if they no longer need their services.

Contractors have a tendency to operate as limited companies, either as individuals or as umbrellas. 

Contractors rarely operate as sole traders, as unlimited liability makes it risky for them, while employers are worried about HMRC thinking that they are employees. Contractors can also pay less taxes by operating as a company.

As a company, however, contractors are still employees in all but name – which is what IR35 deals with. 

For tax purposes, therefore, a contractor ought to be treated as an employee if they perform similar duties as an employee. HMRC takes a very close look at companies that provide ‘personal service’.

Who are personal service companies?

While a personal service company (PSC) may sound dubious, it is merely a company operated by a contractor to perform freelancing (since most businesses won’t hire a sole trader). 

HMRC uses the term “cover companies” to describe contractors who are in reality employees, but appear to be using these companies as ‘cover’.

Contractors and the businesses that use them are both affected by this, which creates a double issue. 

If a business fears being considered as an employer by HMRC, it may not engage any contractors. Both the contractor and the business lose. The majority of small businesses worry that this will occur after April 2021.

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

Previous Post

What is sales coaching?

Next Post

Why does everyone need a Virtual personal assistant in their life?

Related Posts

Visual guide on starting a business plan, highlighting key accounting and finance elements for new entrepreneurs.
Finance

Finance vs accounting: Key differences and career paths

September 16, 2025
462
The Role of Blockchain in Sports Beyond Cryptocurrency
Finance

The Role of Blockchain in Sports Beyond Cryptocurrency

September 12, 2025
566
Smartphone displaying a stock chart with fluctuating lines and data points.
Finance

CHIPS Act Shake-Up: How Washington’s Plan Impacts Tech and Industry Stocks

September 5, 2025
568
sifx.com: What’s Behind the Growing Buzz Among Traders?
Finance

sifx.com: What’s Behind the Growing Buzz Among Traders?

September 2, 2025
557
Georgia’s Free Industrial Zones (FIZ): A Strategic Choice for Crypto Businesses?
Finance

Georgia’s Free Industrial Zones (FIZ): A Strategic Choice for Crypto Businesses?

August 29, 2025
571
Senior Citizen in a wheelchair
Finance

How to Support and Manage Your Parents’ Financial Decisions Through Dementia

August 26, 2025
570
Next Post
Why does everyone need a Virtual personal assistant in their life?

Why does everyone need a Virtual personal assistant in their life?

RECOMMENDED NEWS

GEOfinder

GEOfinder Review: Can You Really Track Any Phone? 

5 months ago
70
Polkadot Staking: Connecting the Dots of the Multichain Future

Polkadot Staking: Connecting the Dots of the Multichain Future

2 years ago
440
London at Breaking Point? How EMERGENCY Glaziers Safeguarded Over 3,000 Landmarks from Glass Disasters!

London at Breaking Point? How EMERGENCY Glaziers Safeguarded Over 3,000 Landmarks from Glass Disasters!

2 years ago
482
Landscapes

Multispectral Remote Sensing: Unlocking Hidden Insights in Earth’s Landscapes

9 months ago
573

BROWSE BY CATEGORIES

  • Business
  • Careers
  • Charity
  • Consumer
  • Culture
  • eCommerce
  • Education
  • Energy
  • Engineering
  • Entertainment
  • Entrepreneurs
  • Environment
  • Fashion
  • Finance
  • Food & Drink
  • Gaming
  • Gardening
  • Health
  • Insurance
  • Interiors
  • Legal
  • Leisure
  • Lifestyle
  • Manufacturing
  • Marketing
  • National
  • News
  • Opinion
  • Pets
  • Politics
  • Property
  • Sales
  • Sport
  • Sports
  • Tech
  • Transport
  • Travel
  • Uncategorized

BROWSE BY TOPICS

Agency AI autosmart banking Beauty business Christmas construction cyber security data digital Digital Marketing Services ecommerce entertainmnet finance fitness Forex health inflation insurance kitchen KYND lifestyle manchester music News north overseas Personal Injury Pharmaceutical Industry property Real Estate recruitment Sir Michael Morpurgo Skincare sports technology tourism travel UK vehicles Warkworth village watch workspace yorkshire

Latest news

Red door labeled "Fire Exit Keep Clear," indicating it should remain unobstructed for safety.

Fire door compliance: Essential considerations for contractors and housebuilders

September 17, 2025
Modern office interior with several desks and ergonomic chairs for employees.

How to Find a Bigger Managed Office for Your Business

September 17, 2025
Why Professional Brand Photography Drives eCommerce Conversion Rates

Why Professional Brand Photography Drives eCommerce Conversion Rates

September 17, 2025
AI chip on a sleek black background, symbolizing advanced artificial intelligence technology.

How AI Can Optimise Cash-Out Functionality

September 16, 2025
Illustration of AI technology transforming the workplace, showcasing robots and humans collaborating on tasks.

NSFW AI Generator from My Dream Companion Redefines Visual Storytelling

September 16, 2025
Visual guide on starting a business plan, highlighting key accounting and finance elements for new entrepreneurs.

Finance vs accounting: Key differences and career paths

September 16, 2025
HTML Templates

The Power of HTML Templates: A Shrewd Choice for Present day Web Design

September 16, 2025
Surfacing UK

Smart Surfacing UK: Innovative and Safe Surfaces for Sports and Play

September 16, 2025
Nano Banana

Nano Banana: Google’s Game-Changing AI Image Tool with Amazing Consistency

September 16, 2025
Mental Health

Mental Health Barriers Older Adults Face Due to Social Stigma

September 16, 2025

Today News

  • About
  • Write for us
  • Contact
  • Privacy Policy

@2024 Rooftree Publishing Ltd

Today News in association with Kajino.com

Sign up for our newsletter




  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce

Recent News

Red door labeled "Fire Exit Keep Clear," indicating it should remain unobstructed for safety.

Fire door compliance: Essential considerations for contractors and housebuilders

September 17, 2025
Modern office interior with several desks and ergonomic chairs for employees.

How to Find a Bigger Managed Office for Your Business

September 17, 2025
No Result
View All Result
  • Home
  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce
  • Write for us
  • About
  • Contact