The Freelance Thread (Contractor, IR35)

Any recommendations on self build websites? All seem much of a muchness. Just need simple brochure site for freelance work (Comms and copywriting)

Square space vs wix etc.

Its been some time since I used an umbrella company, if I have an amount in mind for pensions contributions for a year will an umbrella company let me use my own platform for investing it or does it have to be their provider? Basically can I use ii/vanguard to manage the pension myself?

https://www.ftadviser.com/your-industry/2022/09/23/mini-budget-ir35-will-be-repealed-from-april/ hmmm I don't know what this means

According to the contractors working with me, it makes no difference to them. However, it chased a lot of people out of the game or into retirement.

in the words of great sir tom pidcock; he's playing with our balls isnt he

Sounds like he’s trying to go back to how it was…..ie contractors working through Ltd companies.

nah IR35 was Hammond and if you are presuming that Sunak would have befitted because of Infosys, I dont think so, IR35 penalised employers more than employees/contractors

Thanks Amey….I’ve updated the comment

IR35 goes all the way back to early 2000s.

So the headline is misleading I think. It looks like they are going to repeal the amendments that made employers responsible for determining if they were taking on a temporary employee or purchasing services from a company as a client. They've left the door open to go further (and maybe they should, IDK) but let's see.

IR35 penalised employers more than employees/contractors

How did you come to that conclusion

It's a controversial but defensible position TBH

Employers....

1. Now had do to a load of additional bullshit paperwork
   
2. Lost a lot of good talent who wouldn't work as FCTEs
   
3. Generally had to offer more money and longer contracts to compensate
   
   

Contractors....

1. Were already benefitting less from LTD company working due to reduction in taxable allowances
   
2. Found themselves in a better place should they actually be able to work outside IR35, or
   
3. Got longer contracts as FCTEs at more money, or
   
4. Left the market for better things
   
   

Employers....

Just seemed (in my field at least) to say fuck it, go through an umbrella. And take less money.

What TW said.

Rates were higher, but so was Tax & NI. A lot higher.

I agree with everything on this page. Also umbrella now as no1 will accept direct anymore.

In terms of IR35 for Employers, I think it puts onus on contractors (open to scrutiny, audits etc) and employers dont have to make NI contributions, paid leave etc.

Maybe its 50/50 as Howard said.

I am umbrella now and contract ends in April, big consumer brand client lets see what they do.

I think there will be more choice of jobs/ sectors now, but you’ll also get those that took permanent jobs going back to contracting.
I did 18 months central government inside IR35, this year 3 contracts all outside but probably not my preferred business areas/ sectors

I am a little confused as to what 'abolishing IR35' means. It says off payroll.

But does that mean that disguised employment is fine now or does it just mean that the compliance isnt there but you can still get penalised?

As above the title of the article was misleading. They're removing the onus on employers to define status - it will now be up to contractors, like it was until 2017 or whatever. HMRC will still be able to go after you if you if you are look like an employee and take the piss or unlucky.

There's a hint that they might look at all of it more closely and do away with it entirely, but I doubt the govt. will last that long.

HMRC will still be able to go after you if you if you are look like an employee and take the piss or unlucky.

My guess is that's the point - big employers of agency / status-fluid headcount didn't enjoy the burden of responsibility for determining that status (in spite of being the driving force behind the shift, cf. nursing staff, care staff).

And now that the pool has dried up a bit, they want / need that flexibility / laxity back, and still have their cake.

I wonder if HMRC has any resources to go after individual contractors with IR35 in mind - it certainly appeared to be a rare occurrence pre-2017

Only the ones that stayed in the same contract 4/5+ years

'Someone' I know did 9 years in the same contract

Lol, I know of a 6+ year guy

Unless you were super high profile (radio / tv hosts etc) I think it was just a case of a few random folks getting selected from a pool of 'suspects' that might be generated from company and individual tax returns. FWIW I doubt they looked at contract length, more how aggressive the tax avoidance was and how it could be painted as evasion.

I know of a 6+ year guy

Gary Lineker?

IR35 reversed 😂