Can IR35 Schedule E contractors claim employee statutory protection rights?
Schedule E tax is the PAYE tax regime which applies to those the Inland Revenue deems to be employees. For contractors providing their services through personal service companies, IR35 is problematic. Contractors must decide, using uncertain guidelines, whether they are caught by IR35. Alternatively, they have the option of applying to the Revenue for a ruling as to whether IR35 applies – that is, they can give the Revenue the opportunity to use the same uncertain guidelines to decide whether they should pay tax under IR35. This all leaves the IR35 contractors in an unenviable position – with the tax status of an employee, but the insecurity of a contractor without sick pay, holiday pay, maternity pay or unfair dismissal rights. But while IR35 will not operate to give contractors caught by IR35 employee rights, a contractor deemed an employee for tax purposes may potentially assert employee rights against a client company in the Employment Tribunal. As time goes on, it seems likely tha
