What is IR35?
The recent changes made to IR35 will have a considerable effect on companies hiring individual contractors where the detail and nature of the working environment more closely represents an employer-employee relationship.
HMRC will be coming down hard on companies who do not meet the requirements of this legislation. If it is found that a contractor or company is in breach, there are severe financial penalties to be paid. Under IR35, HMRC can investigate up to 6 years of history and evaluate past contracts to determine whether or not the legislation applies.