IR35 rules, which apply where an individual which would otherwise be an employee provides their services through a limited company, have been around for several years now. The aim of the legislation is to stop the tax advantage gained where a director/shareholder of a company draws dividends instead of a salary.
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Inland Revenue guidance, known as IR35, was brought in in 1999 to stop people who, in the Revenue’s eyes, should be employed, benefiting from lower taxation by trading through their own limited companies instead of being paid through PAYE.
We are sure that most people do not need reminding to file safely all correspondence received from H M Revenue & Customs (HMRC). However in case your filing system is not as robust as it could be, consider this…..
HM Revenue & Customs (HMRC) have published guidance detailing their new risk based approach to checking taxpayer’s compliance to the intermediaries’ legislation (or IR35).
A new online resource, ‘Basic PAYE Tools’, replaces HMRC’s Employer CD-ROM. The resource is available on the Business Link website.