Log in using your ITContractorsUK account
Why Contractors Need To Understand IR35
Article Author: Brendan Beeken Posted on: April 22, 2016 (Full Author Bio in the box on the right side)
3502 views
When you work as a contractor, there are several routes you can take as to the structure of your company. You can act as a sole-trader or, alternatively, set up a limited company.
If you decide to go down the limited company route, it is important that you understand whether you fall inside or outside the IR35 legislation.
If you’re working for a client through an intermediary, IR35 will apply. This means all payments to the intermediary are treated as an employment income, where tax and National Insurance contributions must be paid by the intermediary. This ensures you pay approximately the same tax and National Insurance contributions as if you’d been directly employed by the client.
You can suffer severe penalties from HMRC if you are caught out by the IR35 rules, including paying interest on the overdue amounts. That’s why it’s so important for you to understand how the legislation works and be 100% certain that it does not apply to you.
By taking steps to clarify the details of the engagement with an end-client, and keeping paperwork to demonstrate the working practices of the contract, HMRC will have less power to argue against it.
The true value of umbrella companies for UK contractors 
UK plc confused about T&S regulations says FCSA research 
Is contracting the key to a successful and family-friendly career 
Where is your IT contracting career going 
APSCo backs call for strategic review which could end raw deal for contractors 
Insulting to Contractors 
HMRC admits contractor tax change legislation needs a rewrite 
Autumn Statement 2016 - How will the VAT Flat Rate Scheme Restriction Affect Contractors? 
5 Trusted Contractor Services Providers in the UK 
How IT Contractors can become an expenses wizard 
What forms do I need to submit In my tax return? 
Top 10 cash flow tips for IT Contractors 
How HMRC continue to confuse matters for Contractors and Agencies 
Chancellor announced dividend tax hike from April 2016 
Is it time to break up with your Accountant 
How does the recent IR35 changes in the public sector affect UK contractors? 
The golden rule of Contracting 
Sole Enterprise with Protected Assets or Limited Company - Which is better for Contractors? 
5 benefits of contracting through an umbrella company 
The top 3 common mistakes Contractors make 
IR35 IT Contractors And Office Holders 
What a Directors loan means and who can take one 
First Time Buyers get cashback on Contractor Mortgages 
First Time Buyers take advantage of the new Help to Buy ISA 
Great Chance to Win a Trip to Monaco for IT Contractors 
Why Contractors should never stop learning 
What is the 24 month rule and how does it apply to Contractors 
The rise of the female contractor 
How will Supervision Direction or Control rules affect Contractors 
Amendments in Finance Bill to prevent misuse of Personal Service Companies 
What is Required For Your First Digital VAT Return: Making Tax Digital 
The 10 commandments of contracting 
How to avoid time between contracts 
What can Limited Company contractors expect from the Budget 2017? 
Do I Need To Complete The Self Assessment? How To Know If You Have A Tax Return Due 
Why Contractors MUST Download TeraCopy Freeware 
FCSA calls for HMRC to abandon its consultation on public sector use of off payroll staff 
Personal Service Company Guide for UK Contractors 
The Taxman is going to war on UK Contractors 
What does change in dividends mean to UK Contractors 
Parents working full time file petition for free childcare 
Understanding tax basics - a guide for contractors 
How Important is IR35 and Tax Planning to Contractor Accountants 
Benefits for Freelance Contractor Mortgages Insurance 
Barclays and Citigroup are the latest to cut IT Contractor pay 
Why it is important for Contractors to network effectively 
Contractors feel puzzled of the UK job market 
FCSA submits its official response to the HMRC consultation 
How the 2015 Budget could affect you as an Independent Contractor 
Top 5 things a first-time Contractor should do when switching to Contracting 
MP David Morris calls for new IR35 legislation for Contractors 
RTI offers annual option for contractors 
Fun ways to save money for the adventurous contractor 
5 New Contractor Mortgages Friendly Lenders Enter The Market 
Festive Gift Ideas for Limited Company Directors 
How much salary should I pay myself as a Limited Company Contractor 
Umbrella Company and IR35 
Doubt is cast on HMRC new IR35 proposals for contractors 
General Elections from the Tax perspective for UK Contractors 
Why Contractors Need To Understand IR35 
Registrar of Companies Scam Letter sent to Businesses 
How will Autumn statement affect Contractors? 
RIP Business Entity Tests 
Why Brexit will not be an easy exit 
What is Contractor Mortgages and how to secure the best mortgage deal? 
Will the low rates mortgage price war benefit UK Contractors? 
Contractor paid 2500 GBP to HMRC for tax return mess up 
Why Contractors should save for a rainy day 
Election 2015 - what is in it for contractors and freelancers 
HMRC Employment Status Service tool - How accurate is it in determining the IR35 risk for contractors? 
Is Umbrella Company the best solution for first-time Contractors? 
A checklist and timeline for new Contractors 
Relieve the stresses of Limited Company contracting with 4 simple solutions 
Changes to the Flat Rate VAT Scheme are coming - are YOU ready? 
6 free tools all contractors should use 
What all recruiters need to know 
Budget is good for small business but still hurts contractors 
FCSA urges Osborne to get his facts right before tarnishing all contractors 
10 Must Have iOS Apps for UK Contractors 
Why compliance has lost its meaning for contractors 
Professional Indemnity Insurance Explained 
The future of IR35 in the public and private sectors 
How can a contractor be a winner in the tax race 
How to deal with unplanned time off for UK Contractors 
Is there light at the end of the tunnel for UK Contractors 
Beginners Guide to IT Contracting 
How will the new tax year affect IT Contractors and Umbrella Companies 
Why Contractors in trust based schemes should think twice 
Why Contractors should set up a home office 
Simple guide to Tax relief on Motor expenses and business mileage 
Intermediaries' legislation - IR35: What is the likely impact of the new rules for contractors working in the public sector? 
How important is it to protect your income as a contractor 
How IR35 reforms in the private sector going to affect the self-employed? Latest Posts
-
Staying HMRC Compliant: VAT Returns Have Chan...
by Amanda Swales on January 29, 2020 Accounting & Tax -
Self Assessment Tax Return 101 - Filling In T...
by Amanda Swales on January 15, 2020 Accounting & Tax -
-
