Off-payroll working factsheet
Published 24 January 2024
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This publication is available at https://www.gov.uk/government/publications/off-payroll-working-ir35-factsheet/off-payroll-working-factsheet
1. Introduction
The off-payroll working rules (IR35) are designed to ensure individuals working like employees, but through their own limited company or partnership, pay broadly the same tax as individuals who are directly employed.
The off-payroll working rules (IR35) have been in place since 2000, and have been reformed since then to shift the responsibility for deciding whether a worker is employed from the individual to the organisation engaging them unless that organisation is a small business. The reforms placed more responsibility on the employer to make sure the right tax is paid.
2. Importance of courts and tribunals
HMRC’s duty is to manage the UK tax system so all taxpayers are treated fairly and that the right tax is paid at the right time. In the vast majority of cases, there is no dispute about the amount of tax due.
Most of the decisions on employment status are straightforward and do not involve litigation. A small number are more finely balanced, generally because of their complexity or because there are uncommon circumstances in the specific case.
In these more complex cases, it’s vital that we are able to establish the tax due under the law, including going through independent tribunal if necessary. This is important for resolving disputes in particular cases and because it can help remove uncertainty on points of law for future cases, ensuring that the rules are clear for all taxpayers.
3. Help and support available
There’s more guidance on understanding off-payroll working (IR35) on GOV.UK.
You can get help on the off-payroll working rules (IR35) with webinars and resources from HMRC.
You can contact HMRC for help with enquiries about the off-payroll working rules or a full run-through of the check employment status for tax (CEST) tool.