New IR35 rules means review is required

IR35 legislation came into force in April 2000 to combat tax avoidance by individuals working for a company through an intermediary, such as a limited company, that would otherwise be deemed as an employee if the services were provided directly.

In April 2017, the legislation changed. If the contract falls within the public sector it is the responsibility of the engaging party to determine whether the contract falls within IR35.

If it does the contractor should be included within the payroll and have tax and national insurance deducted and be included on the full payment submission (FPS).