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Practical points 2020 – Off-payroll working and IR35

Guidance from ICAEW's Tax Faculty for practitioners on the latest developments in practice, policy and legislation related to off-payroll working and IR35. These brief practical points are published each month in the faculty's magazine TAXline.

HMRC is still challenging taxpayers under the IR35 rules, and such disputes can take years to reach the tax tribunal in order to resolve the matter. If your client is at risk of an IR35 challenge, it’s worth checking whether the following indicators of employment exist in their case:

If the contractor is obliged to take up any work offered under the contract, and the engager is obliged to pay the contractor whether or not the work is performed, this is a clear indicator that there is a mutuality of obligation. This is a cornerstone of an employment/employee relationship.