Re: FN-FORUM: Ir35 legislation & opting out ?

date posted 30th October 2007 18:27

On Tue, Oct 30, 2007 at 06:46:29PM -0000, Phillip Healey wrote:
>
> I can't see how this is at all true. If it were, then it would effectively
> rule out any self-employed person from ever doing any work. With actually
> knowing 100% the facts, I would suggest that this is nothing more than
> paranoid nonsense from the company you are working with. They obviously
> think that pushing you into using an umbrella company will rid them of any
> risks they?ve dreamt up regarding taxation etc.

If you do a runner and don't pay your tax then the agency could
be liable to pay your tax. If they contract a Ltd company
then they don't have the liability. It is a small risk, but
they won't take it. Most contract agencies are like this.

> Although I could be wrong, which would be very worrying.
>
> Regards
> Phill Healey
> Munklefish
> Po Box 70
> Manchester
> M34 3SQ
> T: 0161 408 4759
> ?
>
> -----Original Message-----
> From: [EMAIL REMOVED] [EMAIL REMOVED] On Behalf Of steve
> wilson
> Sent: 30 October 2007 18:28
> To: FN-FORUM / [EMAIL REMOVED]
> Subject: FN-FORUM: Ir35 legislation & opting out ?
>
>
> 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.
>


--
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