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  • I are 35 for dummies.

  • Despite the title of this video, if you are watching it, it is quite likely that you are a rather articulate person and probably with the high skill level.

  • However, despite this, like most people facing a change in their working style, they are faced with something that is new.

  • If the person that you are going to work for ask you to operate through a limited company rather than as an employee or a sole trader, you need to consider very carefully the implications off the provisions off the infamous tax legislation refer to as I are 35.

  • This video is an attempt to simplify the features off.

  • I are 35 as a starting point for you to consider if this applies to you.

  • It is, however, no substitute for detailed advice relating to your specific circumstances.

  • You should always seek your own professional advice before taking any action.

  • The background toe I are 35.

  • Over the years, there's been a growing trend for businesses wanting to avoid having their workforce as employees.

  • Instead, they have preferred to use the service is of self employed individuals as this reduces the cost to them as they avoid employers.

  • National insurance.

  • And it's also avoids many off the legal issues that are related to employment.

  • That has been a history off hmrc challenging the status of self employed subcontractors.

  • This pose a significant threat to the businesses that use the service is off such so contractors.

  • Should they lose the argument with HMRC aboutthe status off the individuals working for them, then they would incur a substantial liability.

  • But tax and national insurance that should have been payable if they had been treated as employees in the first instance as a consequence of this business is reacted by requiring their subcontractors operate through a company which removed the status threat from them.

  • It was, as a consequence, off a significant loss of revenue that HMRC faced by this trend, that's I R 35 was introduced status, A central issue that underlies I are 35.

  • Is the actual status off the workers involved?

  • Are they really self employed, or are they really employees just pretending to be self employed?

  • There's no legal definition of what an employee is, but there's a great number of legal cases that have established the criteria that defines status.

  • There are many factors that it is necessary to consider, but each case has to be taken on its own merits.

  • No one factor is conclusive in establishing status, as all the relevant factors need to be considered in the round.

  • The ones that ever status that are definitely employed and the ones that are definitely self employed are usually obvious.

  • Many, however, fall into the gray area of uncertainty, which lies between these alternatives.

  • This creates the background of uncertainty that makes I are 35.

  • Such a problem I are 35 is applicable in all cases where the argument about status would be lost and the worker would be considered unbalanced to be an employee rather than a genuinely self employed person.

  • When does I are 35?

  • Apply where the relationship between the worker on the end user is one off employment.

  • Then the end user takes the risk off the relationship.

  • If they pretend that the worker is self employed when in reality based upon the facts, they should be employees.

  • I are 35 applies where an intermediary body, usually a limited company, is introduced into the relationship between the worker on the end user.

  • The worker operates through the limited company, who in turn invoices the end user off perhaps another body in between, such as an agency autumn umbrella company.

  • Where such an arrangement exists on the true nature of the relationship is effectively that OVEN employee than I are 35 applies.

  • What is the effect of I R 35?

  • Where it applies?

  • The earnings paid from the end user to the intermediary body must be subject to P A y E.

  • After a small deduction of 5% and after the deduction of any expenses that any employees would be able to claim.

  • This compels a significant amount of the income earned to be subject to tax plus employees, National Insurance plus Employers, National Insurance.

  • This means a substantial amount of tax and national insurance would be payable.

  • If the provision of I R 35 are ignored and the companies used to pay a minimum salary and dividends to reduce the tax liability, then that is likely to be a big difference between the tax actually paid on the amount of that should have Bean paid hard.

  • I are 35 been applied as the years go by, this amount gets bigger and bigger.

  • This puts the company at great risk.

  • However, if the company fails to pay over the tax and national insurance required by I R 35 then if HMRC find out about the situation, they can go to the end worker and demanded from them.

  • By the time they do this, the amount due can be considerable.

  • The end effect is that the risk has been passed from the end user down to the intermediary body and ultimately onto the end worker.

  • If an intermediary body is introduced in a situation deemed to be akin toe unemployment.

  • If you're asked to operate through a limited company, you need to be aware off the significant tax cost that you will face do toe.

  • I are 35 on the substantial risk should you ignore it, as the rescue will face is considerable.

  • You should always seek professional advice from an accountant who fully understands I are 35 its consequences.

  • Thus, if you are asked to operate through a limited company, be on your guard, take care on dhe seek advice.

  • If you think I are 35 might apply to you And you would like to discuss the situation with others.

  • Police Telephone is on Oh on 2 to 6 to 458 to fall.

  • We were delighted to speak to you.

I are 35 for dummies.

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B1 中級

IR35傻瓜 (IR35 For Dummies)

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    林宜悉 發佈於 2021 年 01 月 14 日
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