At QAccounting, we know that being IR35 compliant is very important to contractors and freelancers; if you are ‘caught by IR35’ then HMRC will treat your income from that contract just the way they would if you were an employee and they will deduct Tax and NI accordingly, (minus 5% expenses allowance for things like insurances and professional fees).
When you are confident that your contract is outside IR35 you can pay yourself a relatively small salary and top this up with dividends, which is much more tax efficient.
We have videos, an online test and a downloadable guide to keep you right on IR35, plus we provide our clients with a yearly IR35 review (as part of their fully inclusive service) in conjunction with our Insurance Partner Qdos Consulting.
Quick IR35 Update:
The IR35 team at HMRC had a meeting on the 23rd of July to take a look at the progress of the 3 new IR35 teams in Edinburgh, Manchester and Croydon.
Have you taken our new IR35 business entity test to see where you stand? You can find out if you are high, medium or low risk in a matter of seconds!
HMRC, when asked how effective this Business Entity Test is, have confirmed that it was too early to comment on the effectiveness based on the number of ‘customers’ (i.e. contractors) who have been taking the test.
However, the HMRC IR35 Business Entity Test is proving rather controversial, with many Limited Company Directors providing services – finding it difficult to get a good score.
Please stay tuned for any further IR35 updates. Contact us for more information.
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Why Freelancers Should Hire an Accountant
In the world of work, freelancing is an increasingly popular option. The promise of flexibility, unlimited earning potential and complete control over the way you work is a hugely attractive prospect for many.
Although freedom is one of the big draws of the freelance lifestyle, there’s still plenty of financial responsibilities that come with it that can really eat into your time and profits.
But do freelancers really need the services of an accountant? Let’s find out.
