Are you a contractor or a freelancer earning through a single or a few contracts? Then you probably feel that IR35 dominates your thoughts, affecting how you are paid and dictating your tax liabilities.
IR35 is effectively tax-avoidance legislation. It was introduced by the government in April 2000 to stop the exploitation of loopholes in the rules around National Insurance Contribution payments and income split between salary and dividends.
At IR35 Experts we have wide experience in the IR35 field drawn initially from IT consultancy but now relevant to the many interim and other consultancy contracts. Over the years our specialist advice has been taken up by hundreds of clients. We have saved them £1000s in tax and at the same time made sure that they have a good relationship with the Tax Man.
Our tax specialists are very familiar with IR35 maze and suggest that if you earn over £20,000 a year through subcontracting activities then you could be generally better off by taking the limited company route rather than as a sole trader or employee.
However, that path is not straight-forward. There are numerous twists, turns and potholes that we at IR35 Experts can guide you round to ensure that the tax man has no reason to dispute your figures and return to haunt you in three - four years time. We aim to complete a full fact find really quickly after the opening consultation and it will be with one of our partners who will work with you throughout our relationship. We'll learn about you and your business, absorb the culture you work in and help you through all your tax issues not just IR35.
Here's a glance at some of the areas you might have missed:
- Extracting or retain profits in different ways
- Timing of tax payments
- Use the profit or loss profile of the business
- Does the Corporation Tax regime offer benefits
- Long term planning for your 'exit route'
- Examine seriously limited company status it can lead to lower tax rates as well impacting on personal and wider family income areas
Our advice is that your decision on a choice of trading medium - sole trader, partnership or limited company requires sound advice and solid help.
IR35 Experts offers that help and support.
Our Sister businesses offering Capital Gains Tax and Inheritance Tax expertise can also be reached through this site to help you. |