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

date posted 30th October 2007 18:48


Not true. You are responsible for paying your own tax. To say another
company is responsible for anothers tax is unfounded. The only problem could
be if they payed someone to do some work and then didn't have any legitimate
paperwork to back up, their claims of where the money went, regardless of
whether the contractor pays there tax or not.

>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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