Intermediaries legislation, usually known as IR35, was introduced in 2000 to prevent ‘disguised employment’. The intention was that if someone was effectively an employee, even if they were working for themselves through a limited comchopany, then they would have to pay payroll taxes just like other employees. The rules continue to this day and have undergone periodic reviews to tighten the tests used to determine whether someone is genuinely work for themselves or as a ‘disguised employee’.
We don’t believe disguised employment through micro-businesses is as widespread as some political rhetoric suggests. We also fear that further reforms to IR35 planned in 2016 will be excessively harsh, unfairly damaging many micro-businesses in the process.
Unfortunately not enough MPs are aware of IR35 let alone the implications of further changes for micro-businesses. We are working hard to improve awareness by meeting politicians and their advisers whilst also submitting evidence to Parliamentary committees.