4 ms·

Would be interested in hearing more - I think IR35 changes in April are going to make co ops an interesting option.

by lifeisstillgood 7y ago

brianhorakh 7y ago
Ir35?
- lifeisstillgood 7y ago
  IR35 is a Inland Revenue Rule 35 (1999) (https://en.m.wikipedia.org/wiki/IR35 https://en.m.wikipedia.org/wiki/IR35). It basically prevents one person "contractor" companies from acting like employees but getting paid like a business and so somehow avoiding tax. If the HMRC thinks your contract with BigCo means you are a "disguised employee" then they will ask you for your missed back taxes. But on April 2020 they will stop asking me for my back taxes and will instead ask the client for whom I work (ie BigCo). As such BigCos across the UK are unwilling to face years of potential back taxes and will from April 2020 do some combination of - state every freelancer / contractor working for them is really a disguised employee so that the employee's company must pay the equivalent income tax / NI - let go of their contractors en mass - push their contractors to major suppliers like Accenture - move their UK based work off shore to NYC / Paris / Mumbai Basically combined with Brexit, UK tech jobs are going to disappear / take a 25% haircut or go abroad. It's not looking good.
jarofgreen 7y ago
So I've only had time to skim read the intro but it looks like this is all about a worker's co-op of freelancers that carry on doing work on a Freelance basis for clients. We aren't that - we are one company, with regular employees. Our clients make a contract with the company, not with any one of us, and the staff members that do particular work for a client may change, just like a normal company. (The fact those employees also hold a share and are directors doesn't alter the nature of our contracts with clients). Will try to read more later.

4 ms·

Would be interested in hearing more - I think IR35 changes in April are going to make co ops an interesting option.

by lifeisstillgood 7y ago

Would be interested in hearing more - I think IR35 changes in April are going to make co ops an interesting option.

brianhorakh 7y ago
Ir35?
- lifeisstillgood 7y ago
  IR35 is a Inland Revenue Rule 35 (1999) (https://en.m.wikipedia.org/wiki/IR35 https://en.m.wikipedia.org/wiki/IR35). It basically prevents one person "contractor" companies from acting like employees but getting paid like a business and so somehow avoiding tax. If the HMRC thinks your contract with BigCo means you are a "disguised employee" then they will ask you for your missed back taxes. But on April 2020 they will stop asking me for my back taxes and will instead ask the client for whom I work (ie BigCo). As such BigCos across the UK are unwilling to face years of potential back taxes and will from April 2020 do some combination of - state every freelancer / contractor working for them is really a disguised employee so that the employee's company must pay the equivalent income tax / NI - let go of their contractors en mass - push their contractors to major suppliers like Accenture - move their UK based work off shore to NYC / Paris / Mumbai Basically combined with Brexit, UK tech jobs are going to disappear / take a 25% haircut or go abroad. It's not looking good.
jarofgreen 7y ago
So I've only had time to skim read the intro but it looks like this is all about a worker's co-op of freelancers that carry on doing work on a Freelance basis for clients. We aren't that - we are one company, with regular employees. Our clients make a contract with the company, not with any one of us, and the staff members that do particular work for a client may change, just like a normal company. (The fact those employees also hold a share and are directors doesn't alter the nature of our contracts with clients). Will try to read more later.