Scribd Logo
Upload

Welcome to Scribd!

  • 7 views

    IR35 The Contractors Tax

    Uploaded by

    Greg Dickson
    IR35 is a tax legislation to stop individuals offering their services via an intermediary. Using an intermediary like a limited company or a partnership you are able to reduce the amount of tax and national insurance paid compared to a permanent employed person. Commonly before IR35 people would have their last day of permanent employment on the Friday and come back to the same job on a temporary contract on the Monday. This meant the newly temporary worker didn’t have to pay the same amount of National Insurance and was taxed at a different rate. In May 2012 HMRC introduced the Business Entity Test, this allowed people to gauge what their exposure to IR35 was. The Business Entity Test was not well received as it confused an already confusing legislation. This page is to help you get a clear understanding of where you sit with IR35. visit http://ukcontracting.co.uk/ir35/ for more information

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    IR35 The Contractors Tax

    Uploaded by

    Greg Dickson
    7 views5 pages
    IR35 is a tax legislation to stop individuals offering their services via an intermediary. Using an intermediary like a limited company or a partnership you are able to reduce the amount of tax and national insurance paid compared to a permanent employed person. Commonly before IR35 people would have their last day of permanent employment on the Friday and come back to the same job on a temporary contract on the Monday. This meant the newly temporary worker didn’t have to pay the same amount of National Insurance and was taxed at a different rate. In May 2012 HMRC introduced the Business Entity Test, this allowed people to gauge what their exposure to IR35 was. The Business Entity Test was not well received as it confused an already confusing legislation. This page is to help you get a clear understanding of where you sit with IR35. visit http://ukcontracting.co.uk/ir35/ for more information

    Original Title

    IR35 the Contractors tax

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    IR35 is a tax legislation to stop individuals offering their services via an intermediary. Using an intermediary like a limited company or a partnership you are able to reduce the amount of tax and national insurance paid compared to a permanent employed person. Commonly before IR35 people would have their last day of permanent employment on the Friday and come back to the same job on a temporary contract on the Monday. This meant the newly temporary worker didn’t have to pay the same amount of National Insurance and was taxed at a different rate. In May 2012 HMRC introduced the Business Entity Test, this allowed people to gauge what their exposure to IR35 was. The Business Entity Test was not well received as it confused an already confusing legislation. This page is to help you get a clear understanding of where you sit with IR35. visit http://ukcontracting.co.uk/ir35/ for more information

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    7 views5 pages

    IR35 The Contractors Tax

    Uploaded by

    Greg Dickson
    IR35 is a tax legislation to stop individuals offering their services via an intermediary. Using an intermediary like a limited company or a partnership you are able to reduce the amount of tax and national insurance paid compared to a permanent employed person. Commonly before IR35 people would have their last day of permanent employment on the Friday and come back to the same job on a temporary contract on the Monday. This meant the newly temporary worker didn’t have to pay the same amount of National Insurance and was taxed at a different rate. In May 2012 HMRC introduced the Business Entity Test, this allowed people to gauge what their exposure to IR35 was. The Business Entity Test was not well received as it confused an already confusing legislation. This page is to help you get a clear understanding of where you sit with IR35. visit http://ukcontracting.co.uk/ir35/ for more information

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 5

    IR35

    What you need to know about ir35

    Introduced to counter tax avoidance by individuals supplying thei via an intermendiary.

    Tax Legislation

    Are what HMRC are looking for. Disguised employees are contrac benets of being employed but the tax benets of using a limited

    Disguised Employees

    Here to stay

    IR35 is here to stay. Its too important for HMRC to keep it in plac contractor to work around the rules if it not in place. One idea is and NaJonal Insurance. Thats not going to happen any Jme soo

    e talking
    12,000.00

    10,000.00

    8,000.00

    6,000.00

    A"

    Be 4,000.00

    2,000.00

    0.00 20 30 40 50 Rate Per Hour 75 100 125

    s IR35 simple!

    companies to that they dont ant make sure k you perform.

    SubsDtuDon in a contract allows you to send a replacement to perform the contracted work. This is one of the key areas that place contractors outside of IR35.

    Substition

    Mutuality of ObligaDo contractor is not expec contract from the clien expected to oer one.

    Mutuality of

    to an element of R35. Risks can ; invoicing for price per

    O"en it's easy to mistake a contractor from a permanent employee but its important for contractors to visible as temporary sta and not considered one of the team

    Part & Parcel

    This is a very dicult t clients will want/need computers and networ equipment can be rela dierent secDon within Test

    Equipment

    Visit http://ukcontracting.co.uk/ir35/ for more information about IR35

    THANK YOU FOR reading

    You might also like