What Every Freelance Contractor Should Know About IR35 (Feature)

[UKFF Mod]

If you are a freelance contractor and want to learn about IR35 then read this article. I'll be discussing the history of IR35, what impact it will have on your pay and give you 3 ways to avoid being caught by it.

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If you have any comments to make about this article feel free to start the debate below!

[Azazel]

What every freelance contractor should know about IR35 (subtitle should be "but were probably too ignorant to read about")

Apart from having a silly little devil picture (if you were to meet the devil he wouldn't have a stupidly gurning face like that I'm sure) it also doesn't make sense.

What I need is for you contractors to take one step back and see it from the perspective witnessed by a lot of us.

You aren't really in business for real are you?

Come on, admit it.

You left permanent work one day on a Friday, and set up as a contractor by the Monday. And then went back to work for the same employer.

Others of you just do temping work filling in for roles that existed in the first place. Therefore, no matter how much you call yourself a 'consultant', you're anything but.

Even worse, some of you have been at the same place for years, you practically match the furniture yet still bleat on that you have to pay more tax because you're "caught" and can't claim petrol costs to your "temporary" (ha!) workplace that you've been driving to for three years.

Now... before too many of you get angry at this, some of you ARE in business for yourselves, I admit that. You really are consultants going in on projects, getting some value-add work done and getting the hell out of there again. And I applaud you.

But what YOU should be doing is TURNING on those contractors that caused IR35 to be introduced in the first place by taking the ****.

Who's joining me in the fight?

[Pistachio]

You're going to fit right in here.

Welcome.

[Malvolio]

I've been beating that drum for the last five years, as have many of my colleagues: Malvolio doesn't only exist on this board and started out as a deliberate attempt to make the case for us being informed grown-ups. While I have had some success in getting the message out and there is a definite groundswell of support for the whole idea of the professional freelancer, every week we get some numpty popping up asking the same questions, demonstrating the same levels of ignorance and refusing to understand what they are getting into.

So as a starter for 10, how about you and all the other agents take some responsibility for the market you have created. As a starter for 10, get a copy of one of the main First Timer guides (PCG, CUK and SJD all do good ones) to all your new or recently converted freelancers? The information is out there: getting people to read it is the hard part. Malvolio only talks to around 200 people routinely, the agents talk to all of them

How about it?

[Azazel]

Originally Posted by Malvolio

I've been beating that drum for the last five years, as have many of my colleagues: Malvolio doesn't only exist on this board and started out as a deliberate attempt to make the case for us being informed grown-ups.

Excellent

Originally Posted by Malvolio

While I have had some success in getting the message out and there is a definite groundswell of support for the whole idea of the professional freelancer, every week we get some numpty popping up asking the same questions, demonstrating the same levels of ignorance and refusing to understand what they are getting into.

I feed on ignorance. I'm a recruiter

Originally Posted by Malvolio

So as a starter for 10, how about you and all the other agents take some responsibility for the market you have created. As a starter for 10, get a copy of one of the main First Timer guides (PCG, CUK and SJD all do good ones) to all your new or recently converted freelancers? The information is out there: getting people to read it is the hard part. Malvolio only talks to around 200 people routinely, the agents talk to all of them

How about it?

I know the market I operate in, and trust me one of my biggest bugbear is stupid contractors. So it looks like we've got a lot in common!

As for me personally, I tell them all about the world they're entering. Whether they listen or not is another factor completely.

[dodgy_Dave]

You need to calm down Azazel. How they operate is none of our business. We just place them, surely?

Once you as an agent starts worrying about IR35 you're on a slippery slope.

[Pistachio]

C'mon Dave, you can't believe that, surely? As the middleman, the agent, you need to KNOW all of this, surely?

[Azazel]

Originally Posted by dodgy_Dave

You need to calm down Azazel. How they operate is none of our business. We just place them, surely?

Once you as an agent starts worrying about IR35 you're on a slippery slope.

As a professional it is your very job to know the ins and outs of what you do.

To just claim that we should have no understanding of how contractors work is not naive, it's downright stupid.

[dodgy_Dave]

I know the basics, but since it's such a complex area it's much better/responsible to point them to the web. I don't want to be giving out of date info out.

[freelancerclive]

You can't make sweeping generalisations like that! Everyone has different circumstances and to claim that many contractors are freeloaders is wrong!