Surviving IR35 - Step 1

Sat, 21 Jul 2007 00:00:00 -0400

The Intermediaries Legislation, more usually known as IR35, was first adopted towards the start of 2000. When it was introduced, it was supposed to stop workers from avoiding paying tax, and enforce the mandatory National Insurance Contribution (NIC). It would do this by forcing certain companies to pay the same tax as their employees. This law has become rather disliked, particularly by freelancers, who typically take significant risks in their business. If they have a well written conmtract, then it supports them, and highlights their self employed position. However, if it is poorly written, thenit can undermine them and even fall foul of the dreaded IR35. The simplest and safest solution is to have all contracts reviewed by an IR35 expert before signing. There are many review providers and the average price is around 120. Given that the review could result in a tax saving of tens of thousands of pounds in an IR35 enquiry, it is a false economy to put off getting a review. Before you send it off for review, I'd suggest you check some things yourself, just to see if there's anything that you obviously need to change. 1. **End Summary** Topics: IR35]]> tax]]> tex legislation]]> contract]]> finance]]> financial]]> financial article]]> freelance]]> freelancers]]> ]]> About the Author: ]]> This article was provided by the companies Home Loans Direct and Small Business & IR35 Contractor Accountants Antony J. Holdsworth & Co.

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Surviving IR35 - Step 1