Working through a company (IR35)
HMRC have released their promised tool (yes, another one) to help people work out if they’re able to provide a service through their own limited company, or whether they should be taxed at source like an employee.
We’re talking about the fabled IR35 legislation here.
This has become a big issue for contractors. New legislation comes in this April which tightens things up a lot for people working in the public sector, including the BBC. The change represents quite a large cut in income for contractors who are caught by the new rules. They’ll be taxed as employees but will have no employee benefits.
Just this week I heard of two IT contractors at the BBC who have decided it’s no longer financially worth working for the BBC after the end of this month. So they’re selling their skills to the private sector where the legislation doesn’t apply, and there’s plenty of work.
So here’s the tool:
…and here’s a view from the Simply Business site on why it might not be working as it should:
Posted on 10 March 2017