IR35 Legislation
IR35 was introduced to stop the use of anti-avoidance schemes. It only applies to Limited Companies, not PAYE/Umbrella models. It aimed to ensure that anyone caught by the rules, or ‘inside IR35’ had tax and NI deducted as if they were an employee. If a contractor is genuinely ‘outside IR35’ or out of scope of the rules, then they can pay themselves in a more tax-efficient manner.