“I’ve been at the same client for nearly 2 years, so does that mean I have to go permanent?”
This question, or variations of it, is asked again and again. Without doubt it is the most common IR35-related myth and is likely to continue to rear its head for years.
I was speaking to a recruitment agency recently, who told me that one of their large end users actually put a 2 year limit on contract workers because they would ‘be inside IR35’ if they continued. So the myth is being propagated from all angles and it’s concerning to think that people will have lost work because of it.
The simple fact is this: there is absolutely no IR35 limit on how long you can work for a single client. Part of the confusion may be caused by the ’24 month rule’, which means you can’t claim travelling expenses to and from the client’s site when you know the engagement is going to exceed 2 years. But this has nothing to do with IR35.
There are also some changes to employment rights after 2 years’ service, but again this is not connected to IR35. Of course, the longer you are at a particular client, the more HMRC would try and argue that you are ‘part and parcel’ of their organisation. Your potential financial liability would also build up, as HMRC would be looking at the entire time you had been there.
However, if the contract works for all parties and you ensure your remain compliant from an IR35 perspective, there is no reason or need to curtail it. It simply shows good business acumen!
IR35 Accounting Packages
QAccounting works as a trusted contractor accountant, so we have experts who know IR35 inside and out! If you would like to like at our accounting packages, you will find the perfect solution for your needs. Contact us for more information.
Arrange a Callback!
If you would like to learn more about IR35 and exactly what you need to do, fill in the form below and one of our IR35 experts will get in touch!
Any information you supply is protected. For more information please read our Privacy Policy.
More Posts
Can an accountant help your start-up grow?
As any business owner will tell you, launching a company isn’t exactly the easy option. But it’ll take something else, too. The support of a good accountant. If you’re a start-up founder (or still in the planning stages) and wondering if it’s time you got an accountant, look no further. This article will tell you what you need to know.
Why do I need a specialist property accountant?
Finances in property and real estate can be seriously complicated, even to a seasoned accountant. That’s why we recommend you seek the help of a specialist property accountant to keep everything straight. Let’s look at some of the basics involved.
How to choose the right type of accountant for your business
The accountant/client relationship is an important one as this is the person who’ll be by your side as you navigate the choppy waters of business ownership, so you’ll need to choose wisely. Here are eight pointers on how to choose the right type of accountant for your business.