A few of our members have recently asked us about IR35 and how will it apply to them. We therefore set out below some information about IR35 to assist you.
IR35 – What is it?
“IR35” has no legal meaning. However, it is a commonly referred to shorthand for considering tax responsibilities and obligations when:
- an individual personally performs services for a client (or is obliged to do so).
- those services are provided under arrangements involving an "intermediary". For example, an agency whom you perform work on behalf of and then collect payment directly from.
- the circumstances are such that if the arrangements had been directly between the individual and the client, the individual would have been regarded as "employed" by the client for income tax purposes.
The aim of IR35 is to combat perceived tax avoidance by individuals and companies who seek to reduce their tax liability by providing their service through a limited company, partnership or another individual.
In simple terms, the rules will apply if a member provides their services to another member through an intermediary but would be classed as an employee if they were contracted directly.
For official guidance and further information please follow this link.
How does this reflect in my relationship with CX / HX / Transport Exchange Group
In short it does not. We provide a platform and we do not contract with you nor are we an “intermediary”. You do not perform services for us or through us. As such, we do not believe that IR35 applies in relation to your relationship with us.
However, that does not mean that you should not carefully consider whether IR35 may apply in relation to the services provided between members. On most occasions, it is very unlikely that IR35 will apply if you accept a one off job from another member. However, our suggestion is that you review the guidance and carefully consider how it applies to you. If you are unclear whether IR35 applies, we recommend that you check here and if still unsure seek professional guidance from either your accountant or a solicitor.