IR 35 rule changesPMC Partnership
From April 2020 HMRC are changing the way rule IR35 is viewed, which determines if you are an employee or sub contractor. The responsibility is going to now be down to the contractor or employer to decide the correct decision. Obviously, tax wise, it is better for someone to be a sub contractor, but the rules are tightening. After discussions with HMRC and governing accounting bodies, it seems that the all important criteria is if an individual has the choice of how, when and where they work-the decision being theirs. Contractors seem to be circumnavigating this new criteria by inserting targets into contracts rather than set hours or places of work. However, remember from April 2020 your contractor must agree your status.