The purpose of IR35, unless I am very much confused, is to determine whether or not an individual is effectively an employee of the client, and that they should be taxed appropriately. Employees pay more tax (when adding employer NICs) than sole traders. So shouldn't IR35 apply equally to sole traders? And if a sole trader is 'inside' IR35 then they should be taxed as if they are an employee?
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Why does IR35 apply only to Personal Service Companies, not to sole traders?
Collapse
X
-
-
Because liability for taxes and NI already lies with the client or agency. That's why agencies won't touch sole traders.Down with racism. Long live miscegenation! -
Oh dear oh dear...
6 weeks to go and we are getting questions like this'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
The OP is already working as a sole trader for a client who has accepted those risks.
Not everything is black and white NLUK..."I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...Comment
-
Originally posted by cojak View PostThe OP is already working as a sole trader for a client who has accepted those risks.
Not everything is black and white NLUK...
I predict that this will become an option for it contractors in the next year.See You Next TuesdayComment
-
Originally posted by Lance View PostSole traders have no issues with ir35, and can claim expenses.
I predict that this will become an option for it contractors in the next year.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by cojak View PostThe OP is already working as a sole trader for a client who has accepted those risks.
Not everything is black and white NLUK...'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by Lance View PostSole traders have no issues with ir35, and can claim expenses.
I predict that this will become an option for it contractors in the next year.Comment
-
Originally posted by cojak View PostThe OP is already working as a sole trader for a client who has accepted those risks.
Not everything is black and white NLUK...Comment
-
Originally posted by JohntheBike View Postyes, but let's investigate the underlying issues. The whole debate around IR35 has been about individuals who were in reality working as employees, whatever commercial framework that they were employing, but particularly a Ltd. company. So what would it be about a sole trader that would over ride the reality of any engagement, which was employee like? I still believe that the prime target for IR35 was IT contractors. Are there no sole traders working for clients in an employee manner?
(In IT at least, where the trader is not paid in cash). A sole trader will have to pay the requisite tax on their turnover minus expenses with no other option for moving things around to avoid the old 'fair share'. A sole trader will have to pay the taxes due (Income Tax and NIC) for their income minus expenses.When freedom comes along, don't PISH in the water supply.....Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment