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

date posted 30th October 2007 19:18

Through a properly worded contract, you can ensure not violating IR35. For
IR35 compliance, you merely need to:
a) Pay your own expenses
b) Define your own working hours; employees are typically, worded to work
Mon-Fri 9-6, or whatever
c) In the event of not being able to complete the contract, supply a
substitute
d) Pay your own tax and NI contributions
e) Not entitled to sick pay, nor paid leave
f) Try to not work for the same company for too long a period (typical 2
year rule)
etc.

The opt-out agreement refers to the Conduct of Employment Agencies and
Employment Businesses Regulations, 2003, in connection with the Employment
Agencies Act 1973. Regulation 12 prohibits agencies from denying payment
for such reasons as a non-signed timesheet, non-payment from the end-client
etc. There are other protections provided to you as the "work-seeker" under
these Regulations. Agencies claim that opting out ensures IR35 compliance,
but in actual fact, has no real effect on your IR35 status.

You are under these Regulations allowed to opt-out provided you give notice
before the introduction to, or supply of services to the hirer (client).

Check you have a properly worded contract is the key.

----- Original Message -----
From: "steve wilson" [EMAIL REMOVED]
To: [EMAIL REMOVED]
Sent: Tuesday, October 30, 2007 6:27 PM
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.
>
> Thanks
>
> Steve
>
>
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