Will all workers who provide their services via these service
companies be now obliged to work in direct employment with their
clients?
No.  A contractor may still decide to operate from their chosen service company.  
As long as they adhere to paying the correct tax and NI contributions as an employee
(and an employer is they own the company), then they will not run into any problems with
Inland Revenue.

What about money left in my company accounts that was earned prior to April 2000?   
The legislation only applies to income earned after 5 April 2000.

Will I be taxed for any training I undertake that is provided by my clients or agency?
No.  Any training provided by clients or agencies will remain tax-free.

Does the legislation apply to "composite" or "umbrella" companies?
Yes.

Can I avoid the legislation by using an offshore service company?
No.  The Inland Revenue has powers to obtain details of payments to offshore companies from the
records of clients and agencies, and workers are subject to the same tax laws as in working through
a service company based in the UK.

Where can I find advice on the application of the new legislation?  
Advice is available from the IR35 helpline on 0845 303 3535.  (This does not include tax planning
advice, but questions directly pertaining to the IR35 legislation, and to contracts relating to the
legislation.)

When did the legislation come into force?
The NICs Regulations came into force on 6 April 2000.  The Tax Legislation came into
force on 6 April 2000.  The Finance Bill received Royal Assent on 28 July 2000.

 

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