Key points
- IR35 reforms are causing earthquakes in the wider flexible workforce.
- Atholl House considered among others the criteria of being ‘in business on own account’ and the litigation has tightened up case law on off-payroll rules.
- The Supreme Court decision in Autoclenz also provides clarity for firms allowing courts to take a purposiveness approach to ‘worker status’ cases and seek the ‘true agreement’ between the parties.
- HMRC’s CEST tool is inadequate due to its over-reliance on the case law factor of substitution and the fact that it was designed framework first.
- It is time for a UK Taxpayers’ First Act.
As the comedian Stewart Francis quips: ‘So what if I can’t spell Armageddon? It’s not the end of the world.’ But for UK businesses a recent change in UK tax law is not proving funny. While the so-called ‘IR35 reforms’ (off-payroll working – ITEPA...