Kingston UK is proud to be supporting the Chartered Institute of Public Relations (CIPR) this month by sponsoring an event for its members from across Kent.
The CIPR, which represents freelancers and contractors (as well as other types of workers in [...]
PAYE – contracting without the worry of IR35
‘IR35′ is a term commonly associated with professionals who set up their own limited company in order to contract or freelance.
IR35 is the term given to legislation that was introduced to increase the amount of tax and National Insurance paid by contractors and freelancers, and to remove the contractors’ right to dividend pay.
The rules will NOT apply if the individual worker receives all his/her income through an intermediary (that falls within Schedule E and class one National Insurance contributions). This is the category you would fall into should you join Kingston UK.
Who does it affect?
There is a common misconception that IR35 only applies to people working in the IT sector, but this is incorrect. The legislation is not targeted at any particular occupation or business sector. It can apply in any business sector:
- where an individual worker provides services to another person
- under arrangements involving an intermediary (such as a company or a partnership)
- in circumstances such that if the contract had been made directly then the individual worker would have been an employee of the other person (client)
Anyone who structures their working arrangements in this way could be affected by the legislation.
To find out more about IR35, tax and Kingston UK’s umbrella solution for contractors and freelancers, speak to one of our advisors on 0800 032 6318 or email us.
