Some IR35 Advice

[PlazaCommerce]

Hello,

This is my first post on this forum, so I hope it will provide a valuable resource and I can be a contributing member.

I've recently started contracting as a web developer. Initially, I took a 3 month contract with a company 5 minutes walk from my residence (I understand that this is VERY rare!). My contract has now been extended by a further 3 months.

I'm getting paid via an agency, and at present the agency pays my business account each Friday, and then on the following Monday I extract a weekly salary of £100 and a weekly dividend of £800 into a separate, personal account.

My concern is falling foul of IR35, as at present I don't use any business expenditure to get to the company and my contract is now fairly lengthy so I could well be identified as an employee in the eyes of HMRC.

I also have in the past completed freelance work for various clients. Would continuing doing small jobs for nominal fee's reduce the chances of being caught out? Also, is there anything else that I can do to reduce the chances?

Finally, I've heard from various sources that IR35 was the plans of the previous government, and the current government are planning on abolishing it. Is this correct?

Thanks for your time in reading this.

[Craig@Clarity]

IR35 is assessed on a individual contract basis looking at the 3 key areas of control, requirement for personal service and MOO. 6 months is not really a lengthy contract and you'll probably find a lot of other contractors work longer simply due to the nature of the contract. It might be worth getting your working relationship assessed for IR35. There are several good reputable firms out there that will do this for a small fee.

IR35 is being consulted but at the moment it is still in force. We all wait with baited breath as to what they could possibly replace it with

[LisaContractorUmbrella]

As Craig says your IR35 status is dependent on your working practises; thwe fact that you don't travel a long distance to get there and it is a 6 month contract is neither here nor there. The fact that you do other ad-hoc work will not necessarily have a bearing - if your main contract is 9-5 Monday to Friday and you do the other work on a Saturday or in the evenings it will really have no relevence. However, if you set your own hours and work several contracts at the same time, on your own terms then it will count towards you being outside of IR35.

There are rumours that IR35 is being looked at but it is extremely unlikely that it will abolished - more likely that it will be tinkered about with

[malvolio]

Looks like time for the six-month reminder

Have a read of The Potted Guide - all you need to know in 500 words.