Understanding Outside IR35

If you are wondering whether you should truly be outside IR 35 or not sure the difference between it and inside, then this is the video for you. ****** Check out my course on how to become an Independent Consultant here 👉masterigroup.com/the-independ...
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About:
This video explains what outside IR 35 is for the contractor or someone new getting into the contracting space.
Disclaimer: Some links in this description are affiliate links, which means I may receive a commission if you purchase from them. This helps to support my work focusing on creating everyday leaders through personal development, coaching, events and value-driven content.

[@clareramsaran3088]

Thank you so much, this is really helpful !

[@MichaelTabirade]

Glad it was helpful! 🙏🏿🙏🏿🙏🏿✨

[@barryduffy4651]

Thank you this has been very clear and helpful

[@MichaelTabirade]

Good stuff! I'm glad it was 😁

[@balarajuc5048]

very good explanation . thanks lot

[@yeehawongi4920]

Outside for me. Thank you for your video, I started to understand more about inside/outside

[@MichaelTabirade]

Great stuff! 🙂 and thank you! 🙏🏾🙏🏾🙏🏾

[@terrabyte-techy]

Thanx for sharing this.

[@MichaelTabirade]

No problem at all! 🙏🏿🙏🏿🙏🏿✨

[@jameshardy6277]

Excellent explanation.

[@MichaelTabirade]

Thank you James much appreciated 🙏🏿🙏🏿🙏🏿

[@bodmatics]

Awesome content. I'd prefer being inside IR35 for now.

[@MichaelTabirade]

Hey Emmanuel, thank you for answering 🙏🏿🙏🏿🙏🏿 I definitely see the logic, and too be fair, for some, it is a great transition step as it may not be too foreign, or too far afield from what many know.

[@RifatErdemSahin]

Gr8 talk

[@MichaelTabirade]

Thank you!

[@adesojiadeyeye423]

Many thanks for this; however the more I try to understand both inside/outside, the more conflicting it gets...I'm new to this system (lol). My last contract as a Process Engineer involved three companies - recruitment agency, an umbrella company and the End Client itself. I was told it was "Inside"

[@MichaelTabirade]

I hear you bro! And that makes sense, as an inside IR 35 contractor, your tax will be similar to those who are permanent and in full time employment, and therefore there are rules around how you should be treated and working i.e. you should be treated fairly as close to a permanent member of staff as possible - give or take (taking into consideration you are off their payroll and being paid by your umbrella company). The agent is acting as the middle person, receiving a finders fee essentially.

[@gabzqwerty]

Outside IR35 always best as long as your competent in your role. Make more money essentially as you can claim expenses on many things

[@dandan3598]

👍

[@tana9381]

Have you got any videos explaining how to set up as an outside ir35 first timer

[@MichaelTabirade]

Not yet, but can think about that for the future

[@tana9381]

@@MichaelTabirade thanks! Other ideas if you have time for videos would be- contractor etiquette, contractor good and bad stories, tips for successfully completing a contractor role

[@sp-01987]

Are you able to use an umbrella company when contracting with a company that falls outside IR35? I’m project based but want to avoid the admin of starting a company and dealing with the tax because it is only a temporary job before starting a permanent position through normal employment.

[@MichaelTabirade]

It doesn't make sense to use an umbrella for outside role as the umbrella acts as a way to show HMRC that you are "employed on the books to the umbrella company". You might as well do an inside IR35 contract in that case

[@YY-tk9xw]

Can i have an outside ir35 contract if im living in Europe and having an LLC in Deleware USA?

[@MichaelTabirade]

I believe I emailed you responding to this. Essentially it is dependent upon your state policies and what the European end client is comfortable doing (usually based on security). But yes it is possible. It usually highlights this on the job description, but I would contact the recruiter/hiring manager, and an accountant in your country to ensure it works.

[@kmariappan1806]

Outside IR35

[@patrickbradley7191]

As a HGV2 driver I believe I'm outside as im not supervised?

[@MichaelTabirade]

Yes, this is very likely.

[@livingstonedaniel982]

Which of the IR35(s) allow me to work for a UK company while I’m outside UK myself? Inside or Outside IR35?

[@MichaelTabirade]

That is company dependent. Inside is less likely to allow this but it again is dependent upon the nature of the organisation and role.

[@taridean]

Can you take on an Outside IR35 contracting role as a sole trader / freelancer or does it have be through a limited company?

[@MichaelTabirade]

Hey Tari, this is a complicated question but I will do my best to answer it. There are instances, back in the past where sole traders did take contracts, however IR35 rules did not apply to them and they worked directly for the end client organisation. As a sole trader you are the business, therefore there were questions as to whether you were truly self employed if you were working directly for the end client organisation. IR35 applies to PSCs (Personal Service Companies) which are basically limited companies that you own or via an agency using an umbrella. In short, sole tradership logistically does not fit this model of contracting I refer to. However, for more freelance style projects or some smaller contracts completed via procurement, there is a possibility. These can also be applied via a "Gentleman's agreement". Personally, I would stick to a limited company and also always pay for/seek advise from a qualified accountant.

[@taridean]

@@MichaelTabirade understood. Thank you for explaining it all.

[@user-lz3lr6jj5w]

Outside IR35 is so far better for those who have a spouse is not working because she takes care of your kids, this save a lot of money

[@nabeelkubba]

Can you explain further?

[@user-lz3lr6jj5w]

@@nabeelkubba you can add your wife as a director and pay a salary where she can receive your free allowance 12000 per year, you can pay dividends for you and your wife in this case if you make 100K years you can pay 38K in dividends for each one in this case you never pay 40% tax. if you receive above 100K you can keep the money in the company and pay next tax year to spread the tax, have a lot videos explain how pay yourself in a Ltd company

[@nabeelkubba]

@@user-lz3lr6jj5w thanks, is it possible/recommended to arrange this through an accountant?

[@MichaelTabirade]

It is best to speak to your dedicated accountant to get this set up, in fact I would speak to them to talk about the logistics of how it is done. If they look after your accounts, it is pretty straightforward for them to do or walk you through

[@Skyler.Finance]

Outside IR35 seems scalable. Can I work as a consultant outside IR35 through a registered company in UK, while residing outside of UK?

[@MichaelTabirade]

That is company dependent and the terms you draw up if it's a true outside IR35 contract.

[@jiteshkhatri20]

Hello there…Not sure and hence keen to know.. I am exploring an opportunity outside ir35..At present my role is under ir35 via an umbrella.Should I be better off going outside from tax perspective as we now have to deal with 25% corp tax and then insurance, accountant, expenses etc. The company, if I establish, will be having myself and my wife as joint directors only..Also is PSC is a legal way of taxation and HMRC has no objection via that type of taxation?

[@MichaelTabirade]

This is my assumption and it sounds like you know the answer, however I would ensure that you seek counsel from a qualified accountant or agency that can run the numbers for you. Online calculators don't always give you the right values as they make a lot of assumptions. Plus you cannot decide on a current contract if you can be inside or outside. That is dependent on the initial contract you get into. 🙏🏿🙏🏿🙏🏿

[@brahmbhatttejas5379]

Outside IR35

[@MichaelTabirade]

💪🏿💪🏿💪🏿