Research: HOC library PSCs & IR35

Published: 8 September 2020

The ‘IR35’ rules to prevent the exploitation of personal service companies for tax avoidance were introduced in April 2000, following a long and contentious consultation exercise. This legislation remains unpopular among freelancers who use this corporate form to provide services.

This note published by the House of Commons library looks at debates as to the effectiveness of these rules and wider concerns about the use of employment intermediaries to avoid tax. The note then discusses recent developments as to their application in the public and private sector.