The damage that IR35 caused skilled freelance professions, combined with Brexit, has been devastating.
As someone who is a contractor, I didn’t mind the previous rule as it put the onus and liability of determining my outside IR35 status on the company. Now, I have to do this myself, maybe even paying for the determination assessment and constantly look over my shoulder to see if HMRC have a different view of my status.
In case anyone asks – I’d rather be on the payroll of the company these days as the tax savings are not as huge as people thing, it is a hassle to maintain a limited company and also I have no employment rights. Its just that companies prefer to employ a contractor rather than take someone onto their payroll
I was a contractor and a lowly paid one (day rate about £130 pre taxes) and I was the only one who actually had a pay cut after covid. All ‘self employed’ friends got a massive bung off the government which they used to build extensions and home bars etc
So what happens now for people currently in a contract under IR35m
My take home pay goes from 5.5k to 8k with this. Feeling quite happy about this but at the same time I have friends and family in perm jobs and cost of living crisis is taking a toll on them. Loads of folks will now decide to be a bit more efficient when it comes to pay as less tax as possible. I personally think this is bigger than the controversial 150k tax break. I know a ton of contractors likes me will finally be glad to pay less tax or not any at all.
5 comments
Great news in general.
The damage that IR35 caused skilled freelance professions, combined with Brexit, has been devastating.
As someone who is a contractor, I didn’t mind the previous rule as it put the onus and liability of determining my outside IR35 status on the company. Now, I have to do this myself, maybe even paying for the determination assessment and constantly look over my shoulder to see if HMRC have a different view of my status.
In case anyone asks – I’d rather be on the payroll of the company these days as the tax savings are not as huge as people thing, it is a hassle to maintain a limited company and also I have no employment rights. Its just that companies prefer to employ a contractor rather than take someone onto their payroll
I was a contractor and a lowly paid one (day rate about £130 pre taxes) and I was the only one who actually had a pay cut after covid. All ‘self employed’ friends got a massive bung off the government which they used to build extensions and home bars etc
So what happens now for people currently in a contract under IR35m
My take home pay goes from 5.5k to 8k with this. Feeling quite happy about this but at the same time I have friends and family in perm jobs and cost of living crisis is taking a toll on them. Loads of folks will now decide to be a bit more efficient when it comes to pay as less tax as possible. I personally think this is bigger than the controversial 150k tax break. I know a ton of contractors likes me will finally be glad to pay less tax or not any at all.