In the world of contracting, IR35 is known throughout as a piece of legislation to look out for as it has heavy implications to you and your business.
Whether you’re caught by it while being completely unaware or not, it doesn’t change the heavy tax fines you could receive, so it’s extremely important you put some thought into IR35 before begin taking on contracts.
Brookson go through the implications of IR35 and how it can drastically change how much your take home pay at the end of the financial year.
The legislation itself was introduced to get rid of “disguised employment”. Where a contractor would essentially be an employee of a company but receive drastically less tax and national insurance. Gaining an unfair advantage over many others in the same line of work.
Now, under IR35, if you’re caught doing this, you’ll potentially lose the tax and national insurance benefits of working as a contractor altogether. Even if you do this without knowing, you still face this risk.
It’s vital that you spend some time to educate yourself not just on the risks of IR35 but ways in which you take on contracts.
Ensure that when agreeing to work with clients, that you aren’t entering into work that could affect your finances.
Although specialist contractor accountants such as Brookson will look out for you and point out any irregularities, it’s always a good idea to double check yourself.
A heavy implication of this could result in you not being able to work as a contractor anymore due to the increases in tax.
One of the many benefits of working as a contractor is the reduction in tax and national insurance, so this could force you into considering other career paths.
Get Expert Advice
The majority of contractors make sure to hire specialist contractor accountants help so that they don’t go it alone. Without it you’re drastically increasing the chance of facing tax increases at the end of the financial year , a surprise nobody wants!
Specialist contractor accountants, such as Brookson, have years of experience in dealing with contracting specific financial accounts and working contracts.
Using this expertise they’re able to keep an eye out for you for any irregularities that could be found in client contracts that you may not notice.
Conducting IR35 contract reviews, accountants will be able to sift through the details to ensure that it properly follows IR35 legislation rules. Leaving you safe in the knowledge that even after all the work you’ll put in while conducting the work, your end of year finances won’t be affected.
Speak to a specialist contractor accountant today to see what they can offer you! You won’t be disappointed!