Contractors who reduce their tax liabilities by billing their clients via their own limited company will know that they should do everything they can to avoid falling into IR35 rules.
One mechanism for doing this is to keep detailed timesheets which will allow you to demonstrate to a HMRC investigator that you are in fact self-employed and not a ‘disguised employee’.…
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The Inland Revenue’s 35th press release in 1999 was titled IR35: Countering Avoidance in the Provision of Personal Services. It was released on the same day as the budget statement and continues to exist. The legislation was designed to tax “disguised employment” at a rate similar to employment.…
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The prospect of an IR35 investigation is sure to unnerve any contractor whose fees are paid through their own limited company. Even if your tax affairs are entirely in order, dealing with HMRC investigators can be a serious distraction and eat into time you could be spending on clients and although you may be confident that you can prove you are truly self-employed, there may still be a risk that HMRC disagrees and demand ‘unpaid’ taxes and a possible penalty.…
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On the back of new changes restricting tax relief on travel and subsistence expenses for temporary workers, independent professionals contracting through their own limited company / PSC are to face a new test to determine whether they are in/out-of-scope of IR35.…
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The great advantage of being a self-employed contractor is that you can minimise your exposure to tax. Taking advantage of various tax breaks means you can be much better off than as an employee.
But tax can seem like a minefield to new contractors.…
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Contracting is like running your own business, with your skills as the product. It’s a great opportunity to maximise your income, minimise your tax liabilities and make it easy for your clients to deal with you. To achieve this, most contractors consider setting up a limited company or working through an umbrella company.…
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One of the great benefits of being a self-employed contractor is that you can reduce your tax liabilities in ways that permanent employees can’t.
Whilst you might be contracting to take home your hard earned money, it’s also important to know how the UK tax authorities deal with self-employed people, particularly a rather complicated set of rules known as IR35.…
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Why do companies hire contractors? There are many reasons. Companies use contractors for all sorts of reasons and knowing what these are can give you a huge advantage over your competitors. By positioning yourself correctly, you can boost your chances of working for the clients you like, doing the jobs you prefer.…
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