What its impact on companies and contractors!
IR35 in essence is a tax that’s coming in to tax contractors the idea of it being the contractors at the movement are doing work on behalf of companies and paying less tax for a job that in any other walk of life they would they could do it by being employed for the company the only people that exempt for IR35 abasing people who wouldn’t who do a job that company in no way shape or form would facilitate as an employer the business the basically bought is an external resources to do the job so the idea is we’re not going to allow them to do it anymore there’s loophole there and unless the coy can demonstrate this employee you know it would do a job or he’s doing a job that has absolutely nothing to do whatever what the company do in any way shape or form and they couldn’t have a permanent employee doing it and therefore they need to go to a next or company or an external resources to bring that ability in because it’s not just not some of the company would normally that’s the instance they would be exempt from it otherwise guess what you’ve got a boat on something that’s the idea.
What is IR35 really about?
Where IR35 comes in it’s basically to cover up a loophole and the problem comes with IR35 really in the companies are looking at it in going we’ve got this contractor on board bring these guys in who’ve got a skill set that wouldn’t normally have yet the government are doing what have yet the government are going that king of is IR35 unfortunately, they can do that job for you could employee some of this you could employ someone for that so you get in instances where people are basically saying this is something we would employ it’s completely ridiculous yet the government are going yeah that kind of lawful formed ir35 comes live in April 2020 to the private sector it’s already actually been involved with the public sector for a couple of years now so what is ir35 really well no I’m gonna be honest for you I think it’s basically a number excuse to bring a taxi in straitly it says what the government say ir35 is and there’s my own opinion and what I think why our 35 is I see ir35 realistically as another tact that the government can put on you you’ve got to bear in mind there’s already taxes on income tax corporation tax for businesses health care pensions inheritance funerals attacks on death paying car tax road tax TV licenses basically almost attacks isn’t it there’s tax on bloody everything it seems as if we’re already paying enough tax who pull up buying enough tons if you’re an employee of a company you could have bear in mind you’re paying tax for this paying tax that and paying tax the other thing and if you’re a contractor you’re already having to declare your Inland Revenue tax in lahir for your tax returns then the tax on ir35 we’re not talking about small tax we’re talking about 20 40 maybe 50 percent depend on the amount of rain dependent on the amount of income they would have you’re basically paying the tax on it is if you’re a permanent employee of a company now that is a massive amount of money for a contract to absorb now some people might say well contractors they get paid more money why am i as a as an employee of a company paying tax paying 20 percent 40 percent 50 and contractors are getting away of it good I bear in mind a lot of contrast we’ll spend a lot of time at work now if you’re in a permanent role you’re getting paid a salary guaranteed every single month you know you might get paid if you’re even an hourly rate you might get paid overtime bonus wherever and you get certain benefits of that company if you’re a contractor job security yeah gone no job security they can get been even in life basically the contract can be can’t whatever reason there’s plenty of loopholes in contracts it’s all very well going will they get paid more money but that extra money is going to facilitate them when they’re out of work the issue here is gonna be if you’re contractor are you really gonna be carrying on doing contract when you’re thinking I’m gonna do permanent work for someone I’m gonna end up getting the same money as I do and I’m a contractor why would I do contracts in the first place but if you’re a company I need
someone to go and do a legitimate contract for them and you can’t find any contacts because they’re all permanently employed or you’ve all of a sudden gotta pay them such an extraordinary amount of money now to rent them away from going abroad how you gonna do that it’s a massive issue it’s just poor so the other party that ir35 is gonna impact his companies themselves the companies at the moment are basically having to pay quite a high amount of money to contract to get them on board to a particular job but you wouldn’t be able to get that skill set in unless you paid someone a decent amount of money now theoretically if the contract has gotta pay the tax anyway it doesn’t make any difference to the company but you’ve got a bear in mind there’s a massive skill shortage in this country if those same contractors are thinking right well I don’t fancy paying 20 40 or 50 percent tax in the UK hang on a minute my skill sets are quite in demand abroad they could leave the country.
For More Information Visit here:
https://account-ease.co.uk/
https://account-ease.co.uk/payroll-services-in-uk/