What is IR35? - IR35 Explained

So what is IR35? Let's check out what the main IR35 rules are and how to avoid IR35 as a UK contractor or self-employed person.
The article is linked here: academy.juniperlynx.com/what-...
We'll also get to discuss the IR35 Public Sector Changes and the notorious HMRC IR35 Tool, which is surprisingly fair when determining your status but has a pitfall when used in the public sector.
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[@JuniperLynx]

Thanks for watching our video about what is IR35! To learn more about our service, just visit juniperlynx.com/contact/

[@skoopqueen]

[@eadad4371]

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[@skoopqueen.]

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[@eadad4371]

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[@skoopqueen.]

@@eadad4371 look her up on the internet and leave her a message she's quite popular for her services as she was recently featured on cnn. She can work with anyone irrespective of where their located

[@emeldcentor1474]

@@skoopqueen. I have had the intentions of starting investing. But I always thought it was late and I think I need to stop procrastinating. I will definitely 🔍 Regina Louise Collaro and see what she can advise .Thanks a lot . This was of so much help to me .

[@TheShadesPro]

Thanks. You are more than lovely.

[@dev-guillaumebertrand1700]

Perfect

[@JustFlameAHoliic]

I have a question pleaseee... soo if i am working a contract as a sole trader for x period of time & hours, but i also have another Zero hour contract with another company.. does that count for doing multiple contracts?

[@JuniperLynx]

thanks for your comment! IR35 is mainly decided from your working practices. Having the zero hour contract itself is neither good nor bad, it depends on how it's used. For example if you split your time up so your income was coming from a couple of sources rather than relying on one client, this would count as having multiple contracts.

[@tonykett]

some great advice, thanks very much!

[@JuniperLynx]

no problem! thanks for watching :)

[@Arabba22]

Would a locum SW be under IR35?

[@JuniperLynx]

Thanks for your comment! It depends on your contract terms and working practices. For example are you being treated the same way as employees, get told how to complete the work and are expected to stay for all contract extensions? There are many factors involved so I wouldn't be able to say just based on the industry. If you're in the public sector then unfortunately the client must decide your IR35 status. These changes were implemented back in 2017.

[@pink221]

I found this really useful! The plumber analogy made it very clear.

[@JuniperLynx]

glad I could help!

[@Design____ByS]

Sorry can you clarify how you gather evidence? Do personal conversations over email count? like "Goodmorning Mike, I'm working from home today" or "Hey Mike, I noticed that I wasn't invited to the Christmas party, which makes sense because I am not and never will be an employee of your company" something like that? :D :D :D

[@darrenf7]

wee legend yee

[@cheekyfingerted1767]

Very Helpful and easy to understand thank you

[@slowdivebreeze1]

sorry, you've just confused me. What is an Umbrella Company?. Is it easier just to get an accountant to sort all this out.

[@JuniperLynx]

Thanks for your comment! An umbrella company is something that clients and agencies use as a third party employer. They would deduct tax/NI from your pay, so the client doesn't need to employ you directly.

[@JustFlameAHoliic]

love this!

[@Mike-fx4wk]

I recently commented on a different video for you to do one on IR35 and here it is already done, a year ago. Thanks. Your vids a very useful, you deserve more subs.

[@JuniperLynx]

Thanks for the awesome comment! The topic deserves revisiting anyway so your suggestion was spot on 😊

[@suedicks9057]

Thank you so much. You explained the IR35 so clearly and structured this to perfection. Out of ten other videos I've watched over the last 6 months, you have been the first and only one to make it clear and understandable. Thank you.

[@bainzylad]

Really cleared up . a lot for me. Thank You!

[@JuniperLynx]

That's really great to hear :) No problem and thanks a lot for your comment!

[@craigk621]

Thanks for this how about one on accounting for FRS VAT in the P&L ?

[@JuniperLynx]

sure thing! In the P&L, the Flat Rate Scheme VAT surplus can simply be accounted for as 'Other Operating income' right under the turnover figure. In the actual income account we'll see a series of transactions from each invoice adding the VAT charged and the amount payable to HMRC at the corresponding percentage, leaving an excess figure of additional income. Hope that helps, but I'll work on a video about it as well!

[@craigk621]

+JuniperLynx Thanks !!

[@rvk671]

@@JuniperLynx In computing opening of vat control of last year needs to be added

[@joe_7726]

Caroline, this is so useful, just what I needed, thank you 😃

[@JuniperLynx]

Glad it was helpful!

[@almutazkhair755]

Can dentists be paid into a ltd company and avoid IR35 since they are self employed too? Or is that frowned upon?

[@DoctorAB282]

Thanks for all great vids wish you merry Christmas and happy new year ahead and please if it possible to explain sections 24 if someone owned property in UK but you are not UK citizens and you don’t live in Uk

[@lwayobanda6921]

Brilliant information I found this very useful and informative

[@JuniperLynx]

thanks for the amazing feedback!

[@mariowieszcz-mario-trucker]

Hi. What about driving sector? How to avoid ir35 ? Every time I have to pick up truck from contractor's Yard etc.

[@m.a6698]

Thank you very much very helpful information. I do some locum pharmacist work on top of my usual employment. Would I be outside IR35 ? Would appreciate your advice.

[@labdhishah9035]

Hi Juniper, I’m an A level student and my topic for my EPQ ( extended project qualification) is somewhat related to IR35. My topic is “To what extent do tax loopholes affect small businesses in the UK?” However my teacher says my topic is quite vast . Can you please, please create a video explaining and exploring that topic. It would be a real grade saver.

[@GC-my8lv]

Hi thanks for the video... im still trying to get my head around it! I want to go self employed. But use my employers trading licence (finance brokerage) so ill essentially be an appointed representative. Ill be using my own equipment and premises etc. Ill be dealing with my own clients. Am i classed as in IR35?

[@sotiriskouzalou2493]

hi there, question that I have generated is regarding nursing and as there are thousands doing freelancing. either in acute or community the contractor cannot use equipment and consumables from trust. what is your advice?

[@JuniperLynx]

Hey, thanks for the question. Could you clarify the specific problem that you are having?

[@paulreilly8330]

Hi if you have multiple clients as a lorry driver but no truck would you be ok???

[@tortysoft]

Is this all still valid in 2020 ? Thanks !

[@JuniperLynx]

Thanks for your comment! The legislation hasn't changed so it's still relevant for 2020. Even when the proposed changes to the private sector take effect from April 2021 (it's possible this gets postponed again) the legislation itself will remain vastly unchanged. The main difference will be that the client has the responsibility to decide your working status if they are a medium/large sized company. You would no longer have the ability to determine your own IR35 status but you would have the right to appeal the status. It would still be possible to accept/reject contracts that are offered to you. You could even find overseas contracts in the EU, US etc. where the UK legislation doesn't apply. There aren't many options outside this other than finding contracting roles with small companies that are exempt from the changes, or simply rejecting all 'inside' IR35 contracts and finding a client that actually looks at your working status properly, allowing you to remain 'outside' IR35. I hope that helps!

[@damodongo]

I’m confused. So if I’m contracting for a small company ir35 doesn’t apply to me?

[@christopherrome4475]

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

[@darumagenki6271]

A hot bird talking about tax and accounting. It's a win win!

[@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?

[@jimreece7615]

Really good explanation. Sadly I’ve seen many ‘contractors’ whose only distinction to the regular PAYE employees is how they are paid.

[@rustonaspoon]

Hi, what would the benefits be for a company to hire a LTD contractor over PAYE?

[@sun2020able]

IR35 OUTSIDE - 90% TAX DODGERS USE IT