IR35: Employment Status Tests Post Atholl

Employment status difficulties

Determining employment status for tax purposes to enable the correct payment of income tax and NICs on earnings has resulted in contractors and companies being involved in considerable head scratching.  Grappling with case law, HMRC's approach and often fluid arrangements in the provision of contractor services has created uncertainty as to whether a contractor would be in employment with the end user client, and whether they therefore fall inside or outside IR35 legislation.  Combined with the need to carry out status determinations introduced by the Off Payroll Working Rules, all parties involved in the provision of contractor services cannot be blamed for thinking the goalposts are subject to continual change.