Key tax dates and deadlines for 2018/19
It is an inevitable reality that, for anyone earning a livin...
By Chris Martins D'Almeida on 15th March 2016
Understanding IR35 and its potential impact on you is vital for anyone that’s likely to be operating through their own Limited Company.
This legislation was put in place by HMRC to establish the true nature of contractor employment and whether it is a genuine business to business relationship or one of “disguised employment”.
Operating in this way enables the individual (in the eyes of HMRC) to falsely make substantial tax and National Insurance (NI) savings. You need to assess each contract to decide if it is caught by IR35 or if it is outside IR35 to know how you can take income from it.
If you are found outside IR35, it will be important for you to be able to show that your operations in the work you complete for your client are different from that of their full-time employees, both contractually and in practice.
If a contract is caught by IR35, you’ll need to pay a lot more tax and National Insurance to HMRC. Here’s the main impact on you:
Remember, if you are investigated by HMRC, each case is unique and with a decision based on its own merits.
If you’re concerned about whether your contract is inside or outside IR35, here’s some pointers to help ensure you’re not counted as a “disguised employee”:
If, however, you remain concerned about your existing practice, it’s best to get professional advice to make sure your contract and procedures are in the right place.
For more information on IR35, check out our comprehensive guide.
We offer a high-level review of your contract as part of our contractor accounting service. We can also refer you to other IR35 specialists if the need arises.
Take a look at our recent blogs below.
GDPR – the General Data Protection Regulation, comes into effect on 25th May and is the bigges...
Published: 24th May 2018
As a business owner, your time is way too precious to spend hours dealing with HMRC or Companies Hou...
Published: 14th May 2018
“Never do tomorrow what you can do today. Procrastination is the thief of time” Charles Dicken...
Published: 11th May 2018
Congratulations! The very fact you clicked this far shows you are considering employing staff, and t...
Published: 17th April 2018
It is out with the old and in with the new when it comes to tax relief on childcare costs from April...
Published: 9th April 2018
The Boox accounting app has always been at the forefront of helping our clients understand their com...
Published: 26th March 2018
Spring has officially sprung and the start of the 2018/19 tax year is just around the corner –...
Published: 23rd March 2018
If your business is employing staff, you should already have a workplace pension in place, under the...
Published: 23rd March 2018
At this time of the year we are used to seeing the Chancellor holding aloft the red box ahead of the...
Published: 15th March 2018
A dispute has erupted between the BBC and 170 of its presenters over their tax arrangements and thei...
Published: 12th March 2018
The rush for taxpayers to file their 2016-17 self-assessment tax return is over for another year, an...
Published: 27th February 2018
If you need a little help to find the right accountancy service, don’t worry.
Get in touch with our friendly team for a FREE service consultation.
Thousands of contractors, freelancers and locums turn to Boox for help and advice with their limited company accounting. They love our personal service and app.
Specialist accounting for sole traders and the self employed, Boox combines easy online tools with expert support to take away the stress of handling your accounts.
Our combination of market-leading accounting software and expert personal advice gives you greater financial control and more time to grow your business.