It's got a lot tougher, especially with single-employee limited companies working almost exclusively for one client.

The OP should change his name to Starbucks and then tell HMRC to fook off

Ive got a meeting with an accountant today so I'll see what he says.



What seems really annoying about the IR35 tax is that it seems if you fall within it, you get taxed more than if you were an employee but obviously without any of the benefits of being an employee.

Is it only the rich that are allowed tax benefits still then? Blimey.

And it was brought in by a Labour Government! although the the coalition seemingly had an opportunity to change the tax law but unsurprisingly did bugger all about it.

It's as much to get the contracting companies as the individuals, really. A lot try to pass employees off as sub-contractors to save paying NI.

Get yourself registered on Sark and avoid any sort of tiresome paperwork and tax, although this advice does not apply if you are a teacher for the island is saturated with teachers with [url=http://www.dailymail.co.uk/news/article-2227905/Supply-teachers-caught-offshore-tax-row-Taxpayers-lose-millions-staff-employed-foreign-firms.html?ITO=1490&ns_mchannel=rss&ns_campaign=149024000 of them all working in one small school[/url.

Having just spoken to the accountant he thinks I'll be ok, I just have to be careful how the contract is worded, probably best if the contract is to oversee one whole project over the six moths rather than various little jobs as and when they arise. But having another client will be enough to prove I'm self employed he reckons. Also he did say that there has hardly been any cases of people actually been investigated and brought into the IR35 tax bracket, although he did say they may be looking to clamp down on it.

Are you going to be working as a sole trader invoicing your clients personally, or are you going to be invoicing through a limited company?



If it's the former, then while you need to think about employment status you don't have to worry about IR35. The IR35 legislation only applies if you are providing your services through your own limited company, e.g. Christopher Ltd.

Given that the latest information sheet was published in may this year, I would hazard a guess that a crackdown is coming. Thinking about it there must be tens of thousands of one man band limited companies out there working for single clients through agencies - effectively disguised employees in organisations such as the NHS (many onsultants work that way apparently) so a clampdown would be potentially both very easy and lucrative. It remains to be seen though whether the individuals positions could be easily defended and whether the government would back down in the face of the lobbying that would come their way if a crackdown took place. My advice to anyone considering this type of thing would be to keep the difference they're pocketing sitting in the bank just in case they have to give it back at some point.

I will be a Sole Trader trading under a business name and billing the client directly, no third party involved.



I'm fairly confident I will be OK.

You will be fine, why wouldn't you be, the only way you won't be fine is if you don't pay the tax you should pay!