Do you know your correct self employed status?

Make sure you conform to HMRC rules regarding your self employed status under their rules as this can be an area of concern.

 

The first and most important point is to establish whether you are ’employed’ or ‘self employed’ under HMRC’s terms. The ambiguity of the employment status‘ guidelines does not help the matter.

 

The Revenue states that they will take an overall view of a contractor’s position to determine whether they will be deemed ’employed’ under the rules, therefore any amended contracts should also reflect your working practices.

 

It is clearly in all contractors’ interests to be viewed as ‘self employed’, or at least for part of your income to be IR35-free. If you are able to diversify your business interests, or change your working practices in order to satisfy more of the pointers to ‘self employment’, your position will be strengthened.

 

IR35 is also known as ‘intermediaries legislation’. It’s a set of rules that affect your tax and National Insurance if you’re contracted to work for a client through an intermediary. You may need to follow IR35 if you work for a client through an intermediary.

 

Please go to the Governments web site for further information:

 

https://www.gov.uk/guidance/ir35-find-out-if-it-applies

No Comments

Leave a Comment: