{"id":6887,"date":"2020-02-25T06:32:26","date_gmt":"2020-02-25T06:32:26","guid":{"rendered":"https:\/\/www.foxymonkey.com\/?p=6887"},"modified":"2020-02-25T06:36:20","modified_gmt":"2020-02-25T06:36:20","slug":"ir35-contract-market","status":"publish","type":"post","link":"https:\/\/www.foxymonkey.com\/ir35-contract-market\/","title":{"rendered":"IR35: Current market and Contracting vs Permanent employment"},"content":{"rendered":"\n

This is a new IR35 post series<\/a> on Contracting and Permanent employment. I will talk about the current state of the market, the future of contracting both inside and outside IR35. I have plenty of data to talk about money and the impact of the April 2020 tax changes, whether you should go Perm or Umbrella, why perms should consider contracting and more.<\/em><\/p>\n\n\n\n

Contracting from April 2020 and beyond<\/h2>\n\n\n\n

You don\u2019t have to be a contractor to realise the mess IR35 has recently caused to companies and people. The number of emails asking me what my plans are for 2020 confirms that. The government last year announced that in April 2020 the IR35 legislation will come into effect in the private sector.<\/p>\n\n\n\n

What this means is that people who work through their limited companies will now pay higher taxes, as if their temporary employment is not really temporary (but PAYE<\/em>). HMRC wants contractors (often called Personal Services Companies – PSC) to pay income tax, in fact, more tax<\/strong> than a permanent member of staff. (I promise the acronyms stop here :) ). <\/p>\n\n\n\n

The tricky bit is that there are no clear guidelines as to what is a legitimate company or not.<\/strong> If I\u2019m someone working 7 years in the same position in the office for a \u201cclient\u201d you\u2019d think I should be an employee, right? I should be in the company\u2019s payroll. <\/p>\n\n\n\n

If I\u2019m a person who works for a week to build a logo for you from my own office am I an \u201cemployee\u201d or not? You\u2019d think no, right? What if I\u2019m working in your<\/em> office for 1 month on that? Now things get trickier. Things like mutuality of obligation, the substitute rule and statement of work come into play, which I will tackle another time.<\/p>\n\n\n\n

The truth is, it\u2019s not so straightforward<\/strong>. <\/p>\n\n\n\n

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