Glossary

IR35

IR35 also known as the “intermediaries legislation”. This piece of legislation to is designed to prevent tax avoidance for any contractor working for an end-hirer via an intermediary (i.e. a Limited Company or Personal Service Company). In a nutshell, it is aimed to stop contractors working as disguised employees and any assignments “inside IR35” or “caught by IR35” must make a deemed payment to HMRC roughly equivalent to the taxes that would have been paid had they been employed by the hiring company.

Other common terms

Contractor Accountant

Contractor accountants are specialists who provide tax advice and accountancy services to independent professionals who work for themselves often via their own limited company. The contractor accountant can provide

HMRC

Her Majesty’s Revenue and Customs (HM Revenue & Customs or HMRC) is a government department responsible for the collection of taxes and National Insurance contributions,

Umbrella Company

Umbrella companies employ contractors under the terms of a permanent contract of employment, meaning that the individual receives all 84 statutory rights and employment benefits