IR35 is designed to prevent tax avoidance where a "personal service company", owned by an individual who is still working in a manner akin to a traditional "employee", provides professional services to clients. In the past, the company was responsible for paying any tax due on the basis that the payment to the worker was an employment payment. However, under new rules coming into force next month, the burden of applying the rules and paying any tax will now be pushed down the supply chain.

In most cases, that will mean that it will be the end-user who will have to determine worker status and collect tax. Particular issues arise where a worker is working both inside and outside of the UK and for umbrella companies. These issues are discussed further in the podcast, together with a look at how income tax and NIC will be collected.