IR35 (Intermediaries Legislation)

IR35 (Intermediaries Legislation)


The ‘intermediaries legislation’ (also known as IR35) is not new. Its purpose is to ensure that individuals who work for a client through an intermediary, such as their own company, pay employment taxes in a similar way to employees, in circumstances where they would be employed were it not for the personal service company or other intermediary that they work through. Before 6th April 2017 the obligation to pay tax and NICs under these rules fell on the intermediary. Under the changed approach, public authorities are responsible for deciding if the rules apply and, if so, for the tax and NICs liability in respect of payments made to the worker’s intermediary. This means that the ‘fee payer’ is treated as the employer for tax and NIC purposes.


What is a public authority for the purposes of IR35 rules?

The definition of ‘public authority’ is the same as that which applies to the provisions of the Freedom of Information Act 2000. In the context of schools and colleges this therefore includes:

  •  The governing body of a maintained school / maintained nursery school
  •  Pupil referral units
  •  The proprietor of an academy
  •  The governing body of an institution in the further or higher education sector.


Available Resources

In this section you can access guidance and information on the IR35 rules and how to use the HMRC tool, templates and tools which includes flowcharts on the process of assessing whether a contractor is in or out of scope of IR35 as well as FAQs on the change to the rules.

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