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If you are a contractor working through your own company, IR35 will be a constant concern in your life and you will no doubt be aware of the government stated intention to review IR35 legislation within the private sector. 

We are offering you the opportunity to get up to a year of accountancy fees paid for with our new referral scheme. Refer a friend, family member or fellow contractor and receive up to 12 months FREE.

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.

The Scotland Act 2012 gave the Scottish Parliament the power to introduce a Scottish rate of income tax (SRIT) which will be administered by HMRC for Scottish taxpayers. The SRIT is to be introduced from 6 April 2016.

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.