Name: IR35: A Guide for Contractors and Freelancers ⚖糂汰️ 請負業者とフリーランサーのためのガイド (IR35: A Guide for Contractors and Freelancers ⚖️)
Uploaded: 2021-01-14T09:35:04.000Z
Duration: 19 min 18 s
Description: VoiceTubeの動画で発音を聞きながら英語表現を覚えよう！学べる英語：

様態の副詞

So I'm gonna talk about our 35 the basic concept and how it affects you contractors on possibly some freelances.

程度の副詞

It's the first question, really, is what it is.

It's a lot of talk about it, a lot of noise about 35 in fact, recently the noise about 35 ramped up as actually, it's in the public domain, and a lot of legislation has now been passed.

But let me take you back to the basic concepts and the fundamentals of I 35.

Are 35 is a piece of legislation that was concocted by HMRC and the government way back in 1999 2000.

So it's been around for a very, very long time on DDE in its most purists and fundamental of form.

A liar 35 is trying to do is assess contractors and freelances.

Are you independent enough to be able to call yourself a contract a freelancer for a particular client on, actually, then operate outside of I 35?

Are you doing exactly the same as you would a permanent employee or an equivalent Permanent employees?

But just getting the tax benefits because your tax regime is under the income tax rules as opposed to the corporation and dividend tax rules.

So what does it mean by disguise Employee?

Employees or the definition, Shall we say So?

Let's look at this a little bit more careful, and I'm gonna give you an example.

So back in the 19 nineties and the early noughties here in the U.

What was happening there was an explosion of I t.

So with it, a lot of I t specialists, these guys on dhe people were very, very specialised technical specialists in the respective fields of I two.

Now they were majority of them were in already permanent positions for medium to large organizations, bound by a employment contract with their employers.

What was happening and there were a lot of them were being advised.

This is they were coming to the Friday quitting their permanent job.

I given notice to sort of council, or shall we say, get out their permanent contract?

And they were coming back on the Monday in many instances, a lot of them in the same role for the same company that they had left on the Friday on that they were coming back is limited company contractors.

So in essence, what was happening is in substance.

They were coming back to exactly the same job.

They were doing exactly the same thing from the same processes.

Same results with same behaviors in the same structure but their legal former change.

Now, instead of being paid three p a y e on a monthly salary that would be impaired gross by the client quite often through an agency into their limited company.

By doing that, a whole new set of tax rules opened up for them.

They were allowed to offset certain legitimate expenses, were paying corporation tax on they were subject to the dividend tax rules on Dhe.

Certainly back then, in the late 19 alone, early noughties, this regime was far more favorable then the income tax regime, and actually remain so up until recent history, based on our experience, years and years of looking after limited company contractors of freelances.

What we often found is in some instances, some contractors and freelancers were getting paid up to 40% Maur When I've been getting paid, I mean, in terms of a combination of their gross income on their take, home pay was making them 40% better off than a equivalent permanent employees.

Now you can see how attractive that was, and soon the world started to spread amongst contractors.

It start to spread very, very quickly, very rapidly.

In fact, a lot of agencies were promoting this with Artie contractors.

And then it went from game for mighty contractors, to the financial industry, to other types of contractors and freelances as well under Soon before you knew it, contractors and freelances that that were working just absolutely went through the roof in the noughties on, even in the early tens in this particular decade.

So there's a reason behind why a limited company contractor really became very, very popular.

That's just one of the reasons, but one of the other reasons was obviously the flexibility of working the right to choose your clients.

Sometimes you know there's a whole raft of benefits that will come into the contractors freelancers.

So essentially, Hmrc and the government were sort of clocked on to this, and they introduced the ire 35 legislation.

Now, essentially, the question is what determines whether a contractor or freelancer is inside or outside of I 35?

That's what we're going to go through now on.

There's no one particular defining factor.

It's a combination of factors that determine whether you're generally in or generally out on dhe.

The key thing here to remember as things current Earth things currently stand with the legislation.

Um, I 35 is assessed on a contract by contract basis, and that will continue to be so even after April 2020.

So the first fact on the first point is Barnaby the most simplest one, and that's about the contract.

Is there a contract between yourself, the individual and you're inclined, or is it with your legal nto, the limited company or umbrella company, in this case with the end client?

If there is a contract between yourself, Andi the end client, but yet you're limited companies being paid, then already.

You're pretty much Fowler by 35 rules and you'll end up being inside.

Now, this is very, very, very rarely happens.

But we have seen instances of this happening will be it, Ray.

Now, I'm gonna use an analogy with this one.

Let's say in your house you invite a tradesman kitchen fits of him on that so that kitchen fitter comes in on you designed the new kitchen.

You, you know, made arrangement in terms of the finances.

And they've given you quite accepted, etcetera.

Now that tradesman is going to come in on finish the job, it's a project for him now, whether he comes in at eight in the morning or nine in the morning or 10 in the morning, You know, quite often they're not.

You know, it's not for you to determine its for you to negotiate with that trades person think anything as long as they finish the job on budget and in a reasonable time as agreed, then more or less, they're gonna let them get on with it now.

That's the key factor here when you go off is a contract or freelancer.

For these large organizations in particular, what happens is the coach of that organization is very, very much blends with permanent employees.

When contractors come in, you know, they're very much blend in terms of that culture.

It's very unlikely if you turn up to them and say, Well, you know, I'm gonna come in at 11.

In some cases, there is flexibility, but more often than not, it's not so.

You know, is that client telling you what to do?

What work to do, you know, Are they guiding you overly or you guiding them?

You bring this school your skills and experience.

The guy then to control is a very, very important one.

And again, it's one of the indicators, which is generally, you know, either in or outside of our 35.

The next one is mutuality of a bigger obligation.

Are you obliged to accept that the work being given to you has to be done?

Are you determining what work needs to be done?

So again, I'll go back to the analogy off the kitchen fit of the trades person that comes into your house.

Now you're gonna sit there and you gotta discuss with the kitchen fitter.