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IR 35 – The New Legislation

IR35- New Tax Legislation 2017

With IR35 due to take effect on 6th April 2017, we believe there are some important things to know about the tax legislation that could directly impact you!


Affordable accountants in Leeds


IR35 is the name given to a tax legislation in the UK that is designed to ensure workers supplying their services to clients via an intermediary, such as a Personal Service Company (“PSC”), but who would be an employee if the intermediary was not used, are taxed in the same way as a general employee.


From 6th April 2017, if you are working in the public sector and your contract falls ‘inside IR35’, your recruitment agency will be required to deduct all tax and NI on your behalf and pay these deductions directly to HMRC.


The NHS will decide which roles fall within IR35. The current stance of the NHS is that all medical professions will be subject to supervision, direction or control and therefore will be within the scope of IR35.


All payments to PSCs, for assignments in the public sector, from 6th April 2017 onwards, will be paid after deduction of tax and national insurance. Payments to umbrella companies will continue to be made gross.


If you are considering changing to an umbrella method of payment, you should act now so that it is set up in good time for the changes.

Got a question about IR35? Contact our Candidate Services Team at They will be happy to help!