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

date posted 30th October 2007 19:09

Thats what the guys at people4business told me. They would basically be
resonsible for any unpaid tax payments linked to the contract I was on
through them.

I think i may give the Inland Revenue a ring tomorrow.


Phillip Healey wrote:
> 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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