HACKER Q&A
📣 vr46

UK contractors, what plans are you making around the IR35 legislation?


IR35 seeks to make the end client responsible for determining whether contractors are, in fact, disguised employees. This is leading to FUD amongst many people I know. What strategies, tactics, contingencies are you deploying to handle the uncertainty? (Mixed with an upcoming election and Brexit)


  👤 NeedMoreTea Accepted Answer ✓
Huh? IR35 has been around for 20 years. Most recent press has been around it being an overly complex waste of space for the tax raised, that should be simplified out of existence.

I managed to see out my time contracting by ensuring back to back agency and client contracts outside IR35, by ensuring the service company retained the key rights - direction and control, substitution and so on. Essentially you just had to tick off all the indicators on the Revenue's list, but other real demonstrations of being a business in your own account helped too. Most agencies were willing, though I know when the revised agency regs came in they tried to resist. Yes, it meant you were doing more than merely being an agency worker hiding behind a PSC -- which for me turned out to be a good thing as it brought additional income and opportunities.

I never had an IR35 caught contract, though several started as clearly IR35 caught offers. I never walked from an offer due to failing to get it put outside, and contracts adjusted. The PCG - Professional Contractors Group (now IPSE) were a big help in combating the FUD, and suggesting successful counter measures.

If I ever went back to contracting, I sure as heck wouldn't be doing it via IR35-caught contracts. :)


👤 gaspoweredcat
same answer as what ill be doing in response to the complete idiocy that brexit is, im leaving the UK, im currently touring japan deciding which city to make my home, before 2020 is finished ill be living here permanently