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> what I can see from rudimentary search on IR35 is that it is meant to make people pay the same tax whether. employed or working as a contractor. Yes, this is
by varispeed 3y ago
> what I can see from rudimentary search on IR35 is that it is meant to make people pay the same tax whether. employed or working as a contractor.
Yes, this is used as a vehicle to make this legislation palatable to the voter. The truth is, big consultancies who operate the same business model as a contractor are exempt from the legislation. So if big consultancy charges £500 a day for a worker, they don't have to pay PAYE on that £500, even though their worker work as de facto employees at the client's, but contractor would have to.
- tome 3y ago> big consultancies who operate the same business model as a contractor are exempt from the legislation What aspect of the legislation makes them exempt?
- tonyedgecombe 3y agoBeing able to substitute staff. If you can accept a contract and then send your next door neighbour to do the work then that is a strong signal that you are outside IR35.
- varispeed 3y agoThis is entirely irrelevant unfortunately. You could be able to send substitute and still be in-scope of IR35. It's ultimately down to the client's risk appetite.
- varispeed 3y agoIt basically only applies to workers who also own the company they work through. > a worker who provides their services through _their own_ intermediary to a client