Where are we at with personal service companies IR35 following the Autumn statement?

November 27, 2015

IR35 is the tax legislation that seeks to tax limited companies working for one customer like employees rather than a company. This is because HMRC does not like employees leaving employment to set up limited companies to work for the same employer (this is done because both sides save tax).

I was predicting developments in the Autumn statement following a HMRC consultation report in the summer.

Nothing concrete was said in the Autumn statement but it looks like HMRC are developing an online digital service to help potential IR35 companies working out whether the rules apply to them. This may be released in 2016 although 6 April 2016 looks too early.

It is possible that eventually, companies will have to prove that IR35 doesn’t apply to them rather than the other way round.

Details are sketchy but it definitely looks like HMRC are tightening the rules on personal service companies.

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