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IR35 in the private sector: Episode 1. A brief history of IR35#AskAMS
IR35 came into law in 2000 to attack ‘disguised employment’ – but become much more wide-ranging. Over time it has become less effective as the Contractor industry educated itself.
IR35 came into being in 1999 to attack disguised employment where contractors were getting Limited. Company tax breaks and tax relief on their travel and subsistence. It was said that people in these personal service companies should be treated as employees, especially if they were doing a job similar to the employees of the client. IR35 was a huge challenge but over time contractors found ways to avoid being caught by IR35 while HMRC lacked the resources to investigate each case. So now the new law coming in April 2020 will deal with the situation by making the end client decide whether the contractor is caught
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