The Chancellor announced his intentions to close the loophole in the IR35 legislation which enabled domestic workers such as nannies, chauffeurs and butlers to be engaged through intermediaries, normally service companies, and achieve large savings in tax and National Insurance contributions (NICs) compared with direct employment.

The loophole was closed for tax with effect from 10 th April 2003 by section 136 of the Finance Act 2003 and, following the laying of The Social Security Contributions and Benefits Act 1992 (Modification of Section 4A) Order 2003 on 18 th July 2003, amending regulations were laid before parliament on 11 th August 2003 to enable the Social Security (Intermediaries) Regulations 2000 to mirror section 136 for NICs with effect from 1 st September 2003.

The effect of these changes is to bring domestic workers operating through intermediaries within the scope of IR35.

Kingston UK will assess your employment status to ensure you do not fall inside the IR35 regulations. Simply fill out one of our Status Questionnaire forms and we will contact you within 4 working hours.