Contractor - IR35 - MSC
There are important elements of legislation that affect contractors who are looking to run their own business. We have detailed some of key areas of legislation that you should be aware of below.
IR35
The key area of legislation affecting Contractors working in the UK is IR35 This piece of legislation was designed to restrict an individual gaining the tax advantages of using a limited company whilst working in a position that would otherwise be deemed to be an employed position.
Section 660
The section 660 rules (or settlements legislation) is a long standing piece of legislation. The legislation was designed to stop an individual giving income or assets to someone else, in an effort to reduce their overall tax bill.
MSC
More recently the UK Government introduced the Managed Service Company legislation. This legislation is designed to restrict individuals from benefiting from the tax advantages of using a limited company without having to manage and control a company.
