Peter Rayney looks at the current issues involving contractors and similar workers.
The ‘original’ IR35 rules have been in place for over two decades and have proved a troublesome area for both HMRC and taxpayers. The ever-growing body of case law – recently affecting many high-profile TV and radio presenters operating through personal service companies (PSCs) - shows just how damaging this legislation can be.
Gordon Brown introduced the IR35 provisions in 2000 to tackle ‘disguised employment’ arrangements where contractors or workers personally provided their services through a PSC. Despite the threats of its removal in recent years, IR35 and the off-payroll regime remain firmly alive and kicking!
Typical PSC operating structure
A typical PSC operating structure is illustrated below: