FN-FORUM: Ir35 legislation & opting out ?

date posted 30th October 2007 17:39

Hi guys,

I am currently doing some freelance work via people4business. I am
having to go through a umbrella company because of new legislation
regarding any unpaid tax will be the responsiblity of the contract
agency. So they need to cover themselves by making their sellers go
through a umbrella company. This way, I basically pay tax as any normal
9-5 person would.

The problem for me is, I have to pay admin costs to use the umbrella
company, and also I would like to pay my tax at the end of the year like
any normal freelancer.

Does anyone know anything of this legislation and if there is a way
around it ? Is the agency im using giving me the correct information ?

I am told, the only way to get around this is to become a ltd company.
But my earnings do not warrant this at the moment..it is a lot of
paperwork and quite expensive.

Also, is the opting out clause in people4business relating to this ir35
legislation ?

Any help or info is really appreciated.

Thanks

Steve