Tax  

What could Gary Lineker's IR35 court case mean for contractors?

  • Explain how tax rules for contractors have changed
  • Identify examples where IR35 could apply
  • Explain steps to take when setting up contractual agreements
CPD
Approx.30min

It is too early to say at this stage what impact the changes made to IR35 in April 2021 will have on contractors and clients, including whether the shift in the burden from intermediaries to clients will have a chilling effect on contracting as a whole, although there is anecdotal evidence that this shift has already happened in many sectors.  

Further, it is disappointing that the Good Work Plan following the 2017 Taylor Review has still not embraced the full-scale change needed to end uncertainty in this area.  At least until such time, parties would be well advised to seek legal and tax advice to mitigate the risk of finding themselves in the same position as Gary Lineker, BT Sport, the BBC and many others before them. 

Merrill April is a partner and David Jones is an associate at CM Murray

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. True or false, previously, except in the case of public sector organisations, where IR35 was found to apply the responsibility for compliance and paying the relevant tax contributions would fall on the intermediary company being used by the contractor.

  2. When it comes to the broad principles that the courts will apply when considering whether a contractor is a disguised employee and therefore subject to IR35, which is not one of those listed in the article?

  3. Since April 2021, with the exception of small private organisations, this responsibility for compliance and paying the relevant tax contributions and the obligation to determine the contractor’s status has transferred to who?

  4. Which is NOT one of the recommended steps listed when it comes to setting up the contractual arrangements between contractor and client?

  5. True or false, Gary Linekar’s case is being considered under the post-April 2021 rules.

  6. What does it mean where the nature and length of engagement one of the factors where IR35 might apply?

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You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain how tax rules for contractors have changed
  • Identify examples where IR35 could apply
  • Explain steps to take when setting up contractual agreements

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