In a piece for LexisLibrary and LexisPSL, John Dunlop, Head
of Tax at DAC Beachcroft, considers the potential impact on the
construction industry of the changes to off-payroll working due to
come into force on 6 April 2020 (the off-payroll IR35
regime).
What is IR35?
IR35 is all about who pays the tax and NIC (and through which
medium are these paid to HM Revenue & Customs) as a result of
the engagement of individuals supplying their services. IR35
applies to engagements via an individual's personal service
company. It is sector agnostic but the construction industry is one
of the main sectors which are on HMRC's radar.
The following central question must be addressed; if you imagine
a contract between the ultimate engager and the individual doing
the actual work would this deemed contract be one of
self-employment or would he or she be an employee? If, in answering
this question, you conclude that the individual is a (deemed)
employee then tax and NIC must be
