🔴 IR35 Private Sector: A Guide for Contractors and Freelancers

The Accounting & Tax Academy Free Membership Site for Exclusive Content: aidhanfinancial.com/accountin...
IR35 in the private sector is a hot topic in 2019-20 as a result of the impending off-payroll working rules that are coming into force in (now) April 2021. Previously it was announced that the new IR35 rules were going to be introduced in April 2020, but the coronavirus pandemic forced the government to delay its introduction.
In this video, I explain the basic principles of IR35 in the private sector and its origins. A basic level of understanding can help contractors and (some) freelancers to gain valuable knowledge in order to help you navigate the choppy waters ahead.
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⏱️TIMESTAMPS⏱️
0:00 - Introduction
0:16 - What is IR35? The history and how it became to be.
4.26 - HMRC and the IR35 legislation
Follow this link to get a legal expert IR35 contract assessment →
🌏 aidhan.qdoscontractor.com/ir3...
DISCLAIMER
My videos are for general guidance, education and empowerment in helping you understand accounting, tax and your numbers.
They in no way constitute specific advice to your specific circumstances. Me & my team would be delighted to help you with your specific queries or accounting requirements through a formal engagement.
Please don't hesitate to book a call or drop us an enquiry at 🌏 www.aidhanfinancial.com/
#ir35explained #ir35 #whatisir35

[@tonydCFO]

Thanks for watching our latest video production on IR35. As always, if you have any questions or comments specifically relating to IR35 please enter below.

[@axlnixon8955]

I guess Im randomly asking but does anyone know of a way to log back into an Instagram account? I stupidly lost the password. I would love any assistance you can offer me!

[@aviarturo5563]

@Axl Nixon instablaster ;)

[@axlnixon8955]

@Avi Arturo i really appreciate your reply. I got to the site on google and Im trying it out now. I see it takes a while so I will reply here later when my account password hopefully is recovered.

[@axlnixon8955]

@Avi Arturo It worked and I finally got access to my account again. I am so happy! Thank you so much, you really help me out!

[@aviarturo5563]

@Axl Nixon No problem :)

[@martinclarke6010]

Best explanation of IR35 I've seen. Very helpful and much appreciated.

[@tonydCFO]

Thank you very much

[@londonguga]

Thank you Aidhan you have helped clearing out my doubts. I so wish there was no state interfering in our lives.

[@mibrahim5215]

The state has already interfered in our lives and is now driving many people to quit their jobs as contractors and consider career shifts. The state in fact is not interested in our lives , only interested in our pockets and they want to reach deep down in our pockets

[@reubensmither6407]

Thank you IR35 is so much easier to understand now.

[@Yesterday23071]

Hi , thanks for your efforts of educating the public in this very important matter . Personally I don't think that to many understand or take seriously this matter . From my accountant point of view I m not inside IR 35 . But more I m listening , more I realize that I really need to get professional advise about it. My impression is that when in April it will come in full effect , to many it will understand it but it will be to late .

[@flaviosantos3889]

Best explanation on KZbin

[@tonydCFO]

Hi Flavio, thank you very much for your positive sentiment.

[@user-rz8ey5yt4l]

Hi, that is an amazing video and you have explained IR35 in details which have cleared my concept completely on this. Can you add downloadable notes in the link which briefly explain main points about IR35 and that will be very helpful to remember by just reviewing the notes at a glance.

[@a2kashif]

Thank you for such a detailed and clear explanation of IR35 and its implications. May I suggest you should add the risk perspective to explain the pros and cons of going as a contractor or employee.

[@tonydCFO]

Great suggestion Kashif. We will make this video to help you and others alike make an informed decision.

[@lesbianalien3435]

Can you explain about hgv drivers with a ltd company please. Looks like agencies are going to love this and pay alot less

[@info2192]

Thankyou Tony for this spot on clear explanation very helpful

[@jamstawildman]

Very clear and helpful. Thank you.

[@crowdpleaser10]

Thanks for this information but I'm intrigued by a key point which has been overlooked or sidestepped by every information source I've found on this subject which affects me directly. I'm a 59 year old contract CAD draughtsman working through my own limited company, at my time of life I'm relatively unlike to receive a serious long term staff offer. That's fine by me as over the years I've worked substantially but not exclusively in project specific time designated site based roles as have always been commonplace in the building & associated engineering industry. I've always considered that by their very nature these were 'Contract' roles with a capital C'. However because of the very nature of the projects which may have been bid in stages & perhaps in no small part my own commitment to them I have often found myself working in a contract role on a particular site for an extended period of time (3.5 years in one recent case) or otherwise being rolled from one project onto another with the same company always on the understanding that I had no expectation of further work beyond the completion of any particular project. In each case I have been expected to attend on a daily basis without right of substitution & work with tools or software provided to me, I'm concerned how IR35 will view me as the Tax Office questionnaire was inconclusive & my own accountant has given no useful advice.

[@tajchana1]

Very Clear and Precised . Thankyou 👍

[@tonydCFO]

A bit of a delayed response from us, but a big thank you for your comment Taj.

[@bushpigs5155]

Thank you so much I am moving from construction PM to IT PM role and this has been a life saver. I'll be watching many of your other videos too. Thanks again, please get the buy me a coffee account so I can at least send you a coffee or two!

[@tonydCFO]

Much appreciated bush pigs. We'll certainly look into this coffee account :-)

[@safali7120]

Great video, you made it so easy to understand. Thank you

[@tonydCFO]

You're welcome Saf.

[@chriseleazar365]

Thank you Sir! Much appreciated.

[@tonydCFO]

Glad it helped

[@sammorris1906]

Now why can't everyone talking about this on KZbin make it so simple. Thanks.

[@tonydCFO]

Hi Sam, thank you for you positive sentiments.

[@papsk]

This is very useful

[@tonydCFO]

Glad it was helpful!

[@Kyle-cf3km]

Great video!

[@tonydCFO]

Thanks for the visit

[@crispindry]

Excellent video. Thanks.

[@tonydCFO]

You're welcome Shed dweller

[@renarose8536]

Thanks very much was really helpful

[@tonydCFO]

Happy we could help you out!

[@ABDULSALAMAYINLA]

excellent

[@UCKszbcV]

Very detailed explanation. Thank you. I have one question... if you are inside of IR35, are you legally an employee, or are you still operating and being paid as a Ltd?

[@tonydCFO]

If you're inside IR35, you're not legally an employee - you get taxed like an employee yes - usually you get paid NET after taxes have been deducted at source.

[@stuartnetherclift7566]

HI - thanks for this vide - very good. I have a three questions for you. 1) A legal IR35 status determination used to take into account factors external to a specific client contract such as are you in business on your own account. Has this changed? 2) MOO - when a contract ends the client is not obliged to offer you a new contract and the consultant is not obliged to accept one. Is this not a lack of MOO or have I missed the point? 3) Financial risk - granted that financial risk within an engagement may be limited, but come the end of the engagement there is massive risk, there may be no new contracts to be found for many months (such as recently with much work frozen pending Brexit outcome). Does this count for nothing now as the CEST tool only looks at particular engagements and not the big picture? Many thanks!

[@aspreckley1]

And how would this affect a contractor , who does exactly the same job as a perm employee I still work for the same company . There is no difference at all duties, start times , still have a manager ,it’s all the same expect I have a limited company which I did for flexibility, nothing to do with getting paid more , bearing in mind I have to pay for an accountant , have no sick pay , have no holiday pay, have to pay for indemnity insurance and and am not always guaranteed work. In fact the pandemic had severely impacted my work offers .

[@cu99460]

So, basically if you have no employee benefits (sick pay; guranteed work; holiday pay) does that mean you are outside IR35 and can still operate as a ltd company?

[@VillainGang.]

just one question, what about verbal contract??? In that case both sides can agree on anything between ltd and ltd what is best for them

[@dadaradabada6928]

Non-uk resident with UK ltd company subjected to ir35?

[@serenityflo_sound]

I have a contract of Employment for hiring services in hair salons. I have set days and times etc and officially employed yet I pay my own tax and insurance but receive a payslip every month. Am I classified as self employed or employed or off payroll. Thank you

[@randyvalantino6850]

How about constructioin . Big house builders should have all trades employed not use sub contractors who have many men working for them with no employment costs they even advertise for trades . Middle men employers but with no costs

[@mibrahim5215]

Can’t wait to fly to Dubai and start my new job over there tax free . The UK is over , this country is all about collecting money

[@tonydCFO]

Dubai is certainly a great tax friendly destination. We wish you all the best Ibrahim.

[@ukkk123]

you are talking only about pay? what about contractor not getting contract for 6 months or 8 months?

[@andrewappleyard796]

Im a hgv driver and I have a ltd company. I dont own my own truck because that would require a operator licence .....This ir35 confuses me to hell . Most of my work comes from agency's. Not 1 or 2 . A few . I pick and choose what work I do on a weekly basis . I use the trucks they give me when I get to the sites the agancy give me a time I need to be they to start the work . But once I've done the work . That me done . I'm not obligated to stay or even take the job if I dont want too . I also pay my own puplic library insurance. ....because of the demand for hgv drivers I can pick and choose who I work for . But most of my work however come mainly from 1 agancy because i choose to do that because it's easy work in compared to the others. So quick question. Dose that in the eyes of the government make me fall in the ir35?

[@M.J.R83]

yes it most definitely does and Ltd company HGV Drivers are the 1st people the government are targeting when this comes into force next April

[@samanthahardy9903]

If someone is operating as a sole trader does IR 35 apply? Also does it apply with zero hour contracts?

[@tonydCFO]

Hi Samantha, thank you for your question. Please go to our Q&A section where you can pose this question and get a free response accountingtaxacademy.com/qa-section/

[@discoverwithmebydriving9265]

Please could you give me some information about on my situation I would be pleased...I opened a limited company and I work with a company every week I send my invoice I get paid through in my limited company bank account but also I would like to work with a different company under my own company and also I would like to get paid through in my limited company bank account but they are saying to me no they want to deduct tax and IN and then they want to pay me .....I can pay my own tax and IN at the end of the year...if I work the way they want there's no point to work under your limited company thanks

[@tonydCFO]

Hi wow Man. Generally speaking, it seems as though your client are classifying you inside of IR35 which is why they would deduct tax and NI at source. However, so my team can establish your exact circumstances, we will need more details about your specific circumstances - please drop an e-mail with your response e-mail to [e-mail]. We can then advise you confidentially and securely.

[@tonydCFO]

Hi wow Man. Each case needs to be assessed individually as there are no blanket rules. What i would advise is to get your contract evaluated by an IR35 specialist to begin with (assuming you have a contract with your client). Based on the IR35 indicators, you will get a legal assessment as to whether this particular working arrangement/contract is likely to fall in or outside of IR35. If outside, you can then challenge your client's desire to pay you like an employee. Follow this link...aidhan.qdoscontractor.com/quote

[@JustFlameAHoliic]

Hope you can advise: I am offering my services to an end client as a sole trader for an agreed time period of 3 months. I don't get the same indemnity cover, no sick pay, etc etc as employees would, i can quit the next day if i choose to etc - pretty much independent except the nature of my role which is in the health industry so of course I see patients on my own but you can't get away from working without a team in health! The end client does not tell me what to do as my role means I consult the patients on my own but there's a team work element in that i can ask for advice from my end client.. can't tell if that would make me inside or outside ir35??

[@tonydCFO]

Hi JustFlameAholiic. It's difficult to tell with limited information, however, the best thing to do is to get a legal IR35 contract assessment (that is if you have a formal IR35 contract with your end client). If you do, follow this link aidhan.qdoscontractor.com/quote and for as little as £50, you can get legal assessment by an IR35 specialist with a opinion as to whether your contract is IN or OUT of IR35. If you have no contract with the end client then judgement of IR35 comes down to the facts and substance of the working arrangement.

[@tonydCFO]

Hi JustFlameAHoliic. Thank you for your question. Unfortunately, assessing an IR35 status is quite complex and subjective. There are quite a few indicators to consider, and your contract (if there is one with the end client) needs to be looked at too. We are more than happy to assist with a professional status assessment under a formal engagement. Please feel free to e-mail us at [e-mail] should you wish to pursue this route.

[@abdharr3761]

Good video. I got a question. Im employed with a company but I'm going to leave and start my own biz In Jan 2020. Main reasons I have to travel 280 a week and thr firm don't pay my fuel. Most likely the old firm will want my skills and ill be a contractor for them doing exactly the same job but now from my home. I also will take one more client and that's it. So I'm In or out?

[@officialfosua]

Your are out. You are self employed not a contractor

[@tonydCFO]

Hi Abu. Thank you for your question. Unfortunately, assessing an IR35 status is quite complex and subjective. We are more than happy to assist you with professional assessment under a formal engagement. You can e-mail us at [e-mail] for further details.

[@christopherrome4475]

HELL MET MAN - Protesting against the UK's IR35 Regulations - KZbin