Off-payroll workers, including Limited Company Contractors meeting their HMRC tax....

[shaunbhoy]

fine until they decide otherwise...and then apply any amendments retrospectively

ftfy

[Old Hack]

Well, looking into this further, it seems fairly easy for normal contractors to be considered low risk, and avoid IR35 being enforced.

1. Rent hot desk space and agree working from home in principle - Cost around £500 p.a.

2. Pay for Public Liability Insurance - Cost around £400 p.a.

3. Advertise on Web site - Cost around £1200 p.a.

So all in, to put you in Low risk category of IR35, costs around £2k, and saves paying up to 45% of income in extra taxes. However, if you and some friends advertise on each others web sites, for £1,200 a year each, you have a revenue stream too, as well as fulfilling your obligations, so it's only going to cost you £900 odd to remove the risk.

Until they change the goalposts again.

[The Spartan]

I thought you had to have Public Liability Insurance anyway or am I getting confused?

[Qdos Contractor]

Professional Indemnity is the insurance mentioned in the business entity test, not Public Liability. You don't legally have to have either, but they are commonly required contractually.

Even if you are medium or high risk, you should then have the opportunity to provide assurance of your IR35 status. It's not a case of 'low risk' or nothing. I would say 99% of our clients are high or medium risk, but the vast majority will still be genuinely outside IR35.

[northernladuk]

Well, looking into this further, it seems fairly easy for normal contractors to be considered low risk, and avoid IR35 being enforced.

1. Rent hot desk space and agree working from home in principle - Cost around £500 p.a.

2. Pay for Public Liability Insurance - Cost around £400 p.a.

3. Advertise on Web site - Cost around £1200 p.a.

So all in, to put you in Low risk category of IR35, costs around £2k, and saves paying up to 45% of income in extra taxes. However, if you and some friends advertise on each others web sites, for £1,200 a year each, you have a revenue stream too, as well as fulfilling your obligations, so it's only going to cost you £900 odd to remove the risk.

Until they change the goalposts again.

Or they investigate you and find that items 1 and 3 are just a sham to chase a lower rating and therefore worthless.......

[Old Hack]

Or they investigate you and find that items 1 and 3 are just a sham to chase a lower rating and therefore worthless.......

1. If you use it, and it's paid for, then there's nothing they can do about it. Nothing. It's only if you don't use it, that it's an issue. I took guidance about this from a professional.

3. Sorry, again, if you are paying for the advertising, and getting it, then it isn't a sham, and can't be seen as a sham. Paying for a magnetic sign to go on your car is legitimate advertising, as is going in your local rag, as it advertising on someone, anyones (including your brothers), web site. It's advertising. I already have shared space with 3 people, whom we recover our costs form eachother. It's legitimate, and legal.

But, you can dismiss this with an ill researched, incorrect and silly diatribe if you like.

[speling bee]

So I'm guessing £220 is what the end client pays the agent rather than what the agent chooses to let his minion keep.

'Arms Length Bodies' does that include 3rd party private companies that operate on a public sector site?

Arms length body is a specific technical term (Quango effectively) I contract for one.

[GB9]

I love the way they state 'tax obligations' as if it were something written in law, which it isn't.

If you aren't desperate for the work, I would tell them where to stick it. If enough people walk then they will soon get the message.

And assuming there is a notice period in your current contract, the agency cannot use its discretion unless they want to be hauled into court.

[The Spartan]

They're better off pursuing the billions in corporation tax they're losing, as long as this exists I will avoid the public sector.

[MyUserName]

What frustrates/worries me is that if the public sector is emptied of contractors and then filled with Bobs it means a lot more competition for me in the private sector which will probably drive down rates