‘Important milestone’ as IR35 tax rules come into effect

SourceEnergy Voice
SectorEconomy
CountryGulf

New IR35 tax rules impacting thousands of workers across the oil and gas industry and beyond come into effect today. Announced in 2019, with a year’s extra delay due to Covid, the controversial off-payroll working rugulations are now in force for freelancers and contractors in the private sector. The IR35 rules aim to ensure that workers, who would normally be classed as direct employees of one company, pay the same income tax and national insurance contributions as their equivalent co-workers. The reforms have forced changes in the employment status of thousands of people in the North Sea sector, who typically work via their own personal service companies (PSC) for tax reasons. The onus on determining whether a worker is a direct employee – “inside IR35” – falls to medium and large businesses, which has led to some disputes in the industry. Accountancy firms have been on either side of the argument, some saying it could hit the sector hard, and others saying it will simply...read more...