IR35 - Who's in and who's out?

[Wils]

Hi all,

Excuse my naivety here, I have a question about the amount of contractors that are outside IR35. From what I understand of it, it sounds so difficult to be outside IR35 that most contractors must bye inside it?

Does anyone know (or hazard a guestimate) what the ratio of software developers that are inside IR35 is to those outside it?

[Notascooby]

Most are outside....

I don't know anyone caught by IR35.

[northernladuk]

You do now!

[Notascooby]

You do now!

OUCH - shocker - from the boy that cries "disguised employee".

Probably covered elsewhere but how the hell did that happen?

[Arturo Bassick]

PCG used to run a ticker of cases won and lost it was about 5/2500 last time I saw it. 5 Caught by IR35 and 2500 not.

It is quite easy to be outside, but requires a certain willingness on behalf of the client and agent. Even if you think you are outside it may come back and bite you later.

[NotAllThere]

I'm absolutely 100% definitely not in IR35.

[northernladuk]

OUCH - shocker - from the boy that cries "disguised employee".

Probably covered elsewhere but how the hell did that happen?

I meant the OP not me!!

[d000hg]

Most are outside....

I don't know anyone who knows they are caught by IR35.

FTFY.

[DimPrawn]

This bloke is outside IR35

One of Britain’s top officials has been allowed to avoid tens of thousands of pounds in income tax under a deal approved by the Coalition, it emerged tonight.

He is paid a basic salary of £140,000 a year, and can qualify annually for a £14,000 bonus and a cash pension contribution of £28,000, taking his total pay to £182,000, via the head-hunter which placed him with the Student Loans Company.

However the sums are paid to a private company he owns, rather than to him personally as if he were an employee.

This allows Mr Lester to pay corporation tax of 21 per cent, rather than up to 50 per cent, income tax on his earnings. Mr Lester’s pay arrangements are estimated by accountants to have saved him £40,000 a year, according to Newsnight.

Documents show the deal was signed off by David Willetts, the Universities minister, who said in a letter that it had been “agreed by the Chief Secretary to the Treasury” Danny Alexander.


Govt approved!

[d000hg]

Does any of that mean they can't sneakily stab him in the back and tell him it's IR35-caught?