Introduced in 1999, IR35 is tax law legislation, properly know as Intermediaries Legislation. IR35 came into effect in 2000 and set out to combat tax avoidance by contractors supplying their services to clients via intermediaries, such as a limited company. However, there is no legal definition of an employee in law and the emphasis is on HMRC to prove that you are an employee. HMRC term these workers ‘disguised employees’ workers who would otherwise be an employee of the company if not disguising their services by contracting via a limited company.
It was a fairly short budget this year and obviously a budget aimed at the May 2015 elections and measures to be implemented in the next parliament. The chancellor reflected on the fall in the oil price (good for the economy as a whole), the downward forecast for world economic growth, the eurozone and political uncertainty.