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We were first introduced to the concept on 9 March 1999 when the Inland Revenue (now HM Revenue and Customs) published a press release detailing Gordon Brown's plans to create legislation to "counter tax avoidance in the area of personal service provision".
The reason for its implementation being that the Government were concerned that people were paying less tax and national insurance by virtue of working through a personal service company structure, whilst continuing to perform work in the same manner as an employee.

PCG forms to combat IR35 proposals.

A second press release by the Inland Revenue on 23 September 1999 confirmed their plans and provided details of their revised proposals.
In particular they set out details of plans to introduce a "deemed salary" tax arrangement and a concession of 5% expenses allowance for those caught by IR35.
Further to this, they also stated that the emphasis was on the service companies to maintain responsibility for "operating the legislation" not on their clients.

The Welfare Reforms and Pensions Bill (containing IR35) is passed through the House of Commons.

IR35 depends significantly on determining employment status. Final guidelines in relation to this were published by the Inland Revenue on 1 February 2000.

The Finance Bill published on 7 April 2000 contained clauses to ensure IR35 became law.

The Finance Bill received parliamentary passage and received Royal Ascent on 28 July 2000. IR35 was applied retrospectively with effect from 6 April 2000, making the tax year ended 5 April 2001 the first applicable tax year.

Since implementation the IR35 legislation has been widely criticised by the CBI and ICAEW.
As mentioned above, PCG was formed to give small businesses a voice. They won a battle to subject IR35 to a judicial review. The Judicial Review hearing took place in March 2001.

Following the Judicial Review hearing in March, it was follows up on 2 April 2001 in the High Court. The High Court dismissed PCG's application.

The first IR35 case loses: Battersby vs Campbell

PCG launched an appeal which was dismissed on 21 December

PCG decide to focus on individual cases and case law.

The IR35 case is won: Lime IT vs Justin

The Tories speak for the first time since its introduction, about the abolishment of IR35.

Majority of these cases were lost by HMRC.

PCG's continual lobbying gains contractors a commitment from the Tories to conduct a review of IR35.

IR35 review promised by new Office of Tax Simplification (OTS).

Experts say that IR35 is unlikely to see any amendments until April 2012 at the earliest.