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

date posted 30th October 2007 19:38

Thanks, but I don't think so. As my own accountant said: No point talking
to someone at the IR, as most people you will encounter may only have been
on the job two weeks. I was advised to complete Self-Employment sections of
the SA, when in actual fact, I only needed to complete the Employment Pages,
by IR. Hence, tax calculated incorrectly and I was hammered for the
equivalent of being taxed twice - amounting to around paying 70% in tax !

If you wish to avoid tax problems, seek advice an accountant. IR prefers to
deal with an accountant anyway, and not the contractor.

Yes, there are 3 parties, and that is what the Regulations account for
describing the relationship and responsibilities of the hirer (client) EB or
EA (agency) and work-seeker (contractor, temp etc.)
----- Original Message -----
From: "Mike A" [EMAIL REMOVED]
To: [EMAIL REMOVED]
Sent: Tuesday, October 30, 2007 8:18 PM
Subject: Re: FN-FORUM: Ir35 legislation & opting out ?


>
> Dawn,
>
> No, regrettably. That is not the case. The poster could have the finest
> worded contract, written by the best lawyers on the subject. That would
> not
> stop the tax man first estimating tax due, taking recovery proceedings,
> and
> a day in tribunal after a long wait. A simple call to the Revenue, noting
> date, time and person spoken to, will help far more than contracts here.
> If
> the Revenue accept a contract as legitimate, of the enquirer acts upon
> Revenue feedback, he will be okay. Most of all though, he will have peace
> of
> mind.
>
> Generally, regard everyone's circumstances as different for these type of
> issues. Add an agency and client - you have three individual sets of
> circumstances, applying to a particular work contract, so four situations
> to
> be analysed before anyone can say an "opt out" is legitimate or wrong.
>
> HTH...
>
> Mike A.
>
>
> From: "Dawn Thomson" [EMAIL REMOVED]
>>
>> 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.
>
>
>
> --
> Freelancers, contractors earn more with Prosperity4
> Call 0870 870 4414 or visit www.prosperity4.com
> and benefit from Inland Revenue approved expenses today.
>
> To advertise here: http://www.freelancers.net/advertising.html
>
>