A brief guide to the tax implications of IR35.
IR35 is the shorthand name for tax rules concerning the provision of personal services through intermediaries.
These rules came into effect on 6th April 2000 but they were significantly amended from 6th April 2017 for contracts involving public sector bodies.
There are now two different applications of IR35 - for the private sector and for the public sector. HMRC also refers to circumstances which may fall within IR35 as 'off-payroll working'.
Many employees need to travel as part of their job for various reasons, whether it's acquiring new customers, working with current ones or attending conferences and events.
The system of benefits and taxation surrounding this essential economic activity is classed as 'travel and subsistence' in the eyes of the taxman.
This involves a business reimbursing its employees, directors or partners for meals, accommodation or other general expenses, and claiming back tax where there is a valid receipt.
For self-employed people, company directors and those receiving other sources of income, it's the time of the year to send your self-assessment tax return.
Self-assessment is the process used by HMRC to collect tax from individuals who may own a business or receive income outside of formal employment.
A tax return is a form which accounts for all income on individual received during the tax year, which runs from 6 April to 5 April. This can be completed on paper or online.
