Reply to post: Re: Heads we win, tails you lose

HMRC claims victory in another IR35 dispute to sting Nationwide contractor for nearly £75k in back taxes

Anonymous Coward
Anonymous Coward

Re: Heads we win, tails you lose

But the description would be for a fixed term contract not a resource supplied through a service company or agency.

Having been on both sides of the fence then I can see the benefits of both but you do(did) pay less tax and get far more money as a contractor than a full time employee or a fixed term contract employee.

I've also employed people as a contractor through a limited company who were contracted directly for that person and had to come in to work and it was a fixed term - so not really outside IR35.

But I've also employed contractors who have a project to do, with a set specification and a timeline with either fixed cost or billable hours. They could work from the office or from anywhere else other than when they needed to attend progress meetings. Clearly this isn't a project for a fixed term employee but could never be considered inside IR35.

It's not difficult to set your contracts up to be genuinely outside IR35 if you genuinely are working in a consultant/contractor role through a personal services company. But if you are working for a fixed term equivalent to an employee then just adjust the rates to cover your sickness insurance (equivalent to what an employee would receive - i.e. a few weeks cover with death and injury benefit) and 6 weeks annual leave + your instability margin to get back on equal terms.

The rates that I've employed contractors on compared to fixed term or regular employees would easily have covered this and more anyway.

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