IR35 Articles

A New Contractor’s Guide to Getting Paid in 2019
marketing | 26 November 2018
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Is your New Year’s Resolution to start working for yourself? You aren’t alone.

January is one of the busiest times for new company registrations as skilled workers target the money and freedom that can come with contracting.

But setting up isn’t easy. There are a lot of things to think about and if you plan your contracting journey properly now, you can save yourself several headaches down the way.

Budget 2018: How It Affects Contractors
marketing | 30 October 2018
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Delivered by Chancellor Philip Hammond on Monday, the 2018 Budget was another important one for contractors.

In this blog post, we look at some of the most important announcements and how they will affect contractor pockets.

CEST Questions as Judge Rejects IR35 Ruling
marketing | 25 October 2018
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More questions have been raised about the reliability of HMRC’s Check Employment Status for Tax (CEST) tool, after a judge rejected one of the tool’s assessments.

A contractor managed to reclaim thousands of pounds in overpaid tax after the CEST tool’s ‘inside IR35’ ruling was challenged in an employment tribunal.

At first, the contractor known as Mr Elbourn went to the tribunal to try and claim back employer’s National Insurance contributions, which he thought had wrongfully been deducted by an employment agency.

Chancellor takes aim at private sector contractors
marketing | 15 October 2018
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Media reports suggest that the Treasury is planning to overhaul IR35 tax rules with a costly policy for limited company contractors.

The move, which could be announced in this month’s Budget, would see public sector IR35 compliance rules extended to the private sector.

Just like public sector bodies, private firms would be responsible for ensuring that off-payroll personal service company contractors stick to the IR35 rules.

If a firm deems a contractor to be ‘inside-IR35’, the contractor would need to be placed onto the company’s payroll and would be liable to pay higher national insurance contributions.

Private Sector IR35 Could Cost Contractors £14,000
marketing | 19 June 2018
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As the government consults on plans to extend IR35 rules to the private sector, self-employment organisation  IPSE claims that the changes could ‘strangle’ contractor living standards.

IPSE claims that the ‘inhibiting, anti-business’ policy could cost contractors an average of £14,000 per year in lost income.

Using average day rate (£430) and average weeks worked (42 weeks per year) figures from IPSE’s Freelancer Confidence Index, they calculate that a contractor’s take home pay will drop significantly.

What expenses can limited company contractors claim

If you contract through a limited company, there are certain expenses that you can claim against your income to reduce your tax liability.

If your limited company makes £50,000 and you claim back £10,000 in allowable expenses, the taxable profit will be £40,000.

There are some rules governing what expenses limited company contractors can claim.

Private Sector IR35 Reforms: What It Means for You
marketing | 30 October 2018
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The Treasury released new guidance on off-payroll working (IR35) in the private sector yesterday, following the Chancellor’s Budget speech.

Following a consultation on the rules, some commentators expected IR35 reforms to take effect from next year. But the policy paper reveals that the changes will be introduced in April 2020, giving businesses more time to prepare for the reforms

We’ve combed through the policy document, picking out the key points so you can understand how the changes will affect you.

IR35, Presenter, Eamonn Holmes, HMRC
marketing | 25 October 2018
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ITV host Eamonn Holmes is locked in an IR35 legal battle with HMRC.

The ‘This Morning’ presenter told the Mail on Sunday that he is the subject of a HMRC ‘test case’ which could result in him paying £2m in unpaid taxes if he is found to be in breach of IR35 rules.

Freelancers Feeling Inflation More Than Most
marketing | 20 September 2018
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Freelancers are feeling the latest inflation rise more than employees, according to the Association for Independent Professionals and the Self-Employed (IPSE).

The warning for freelancers came after the Office for National Statistics revealed that inflation rose by a higher than expected 2.7% in August.

Measured by the Consumer Prices Index (CPI), this was the highest monthly price increase in six months.

Jordan Marshall, IPSE’s Policy Development Manager said: “Freelancers will be especially hard hit by this jump in inflation not only because, unlike employees, they pick up their own business costs, but also because they travel more to win and work on different contracts. They will particularly feel the effect of the 13.5 per cent jump in air fares, because many of them take up contracts overseas and travel long distances in the UK.

Government seeks views on IR35 non-compliance in the private sector

The government wants to hear from you as part of an attempt to tackle IR35 non-compliance in the private sector.

It comes after changes to IR35 rules in the public sector caused problems public authorities and contractors

Also known as off-payroll working, IR35 rules are designed to stop employees working and paying taxes as if they were contractors.

The rules apply to contractors working through personal service companies who, if they were engaged directly by the company, would effectively be employees.

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