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IR35 is a tax law that aims to clamp down on the lower tax paid by contractors who work through a limited company but are actually employees.

More detail:

IR35 is a tax legislation in the United Kingdom that aims to reduce tax avoidance by individuals who claim to be a contractor but are actually performing Employee roles.

IR35 allows HMRC to chase payments from these people to make sure they have paid the correct amount of Income Tax and National Insurance contributions.

Without IR35, contractors who work through a Limited Company but are closer to being employees would be able to pay lower tax than if they were properly classified as an Employee while still receiving the security benefits of an Employee. The "employers" of these workers also benefit as they don't have to make National insurance contributions and pay for other benefits like sick pay.

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