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Introduction

Ever since its introduction in 2000, the off payroll (IR35) legislation has been consistently problematic. In particular:

1. •

   the regime is viewed as unfair because it treats those within it as quasi-employees but without giving them employment rights. As a result, those affected by the regime have long campaigned for its abolition

2. •

   it is often far from clear whether an individual’s engagements are within, or outside, the rules (see the Establishing employment status guidance note). This causes uncertainty for individuals who frequently need specialist advice

3. •

   HMRC investigations are burdensome and can be so expensive that the business closes down

Each of these is discussed briefly below.

Unfairness

The original press release which introduced the first iteration of the legislation in 1999 said the rules were needed because personal service company (PSC) structures had damaging social consequences. Individuals