Posts by Chika101

IT contractor has £240k bill torn up after IR35 win against UK taxman

Re: Why...

Check your facts - this legislation affects anybody who operates through a limited liability company.... Freelance GP's, surgeons, builders / tradespeople. In fact IR35 came about to tackle tax avoidance in the building trade, but the focus these days has shifted to IT because, I suspect, employers are so poor at managing the expectations of their employed staff, and that extends to HMRC itself who couldn't even accurately assess the IR35 status of their own contractors so decided to apply a blanket status for ease!

Re: In case this is all confusing...

I think what most contractors don't even consider is that unless you actually negotiate your best position in your contract your business insurance may well be voided as it's your duty as a director to reduce the risk associated with any contract, and not your insurers job to insure you against your own stupidity. I've spoken at length to my insurers about this and have been told it's rate for small businesses to do their due diligence in this way, but many find themselves open to large legal bills when trouble arises because their insurance doesn't cover them.

This extends to ir35 insurance too, so even if you have it, you still need to know your s**t and negotiate your best position and ensure your insurers agree. If you don't you only have yourself to blame.