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dwyl / UK-HMRC-FAQs

:money_with_wings: An incomplete guide on what you need to know about the HMRC if you're a freelancer in the UK
MIT License
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IR35 #13

Open jackcarlisle opened 7 years ago

jackcarlisle commented 7 years ago

How does the IR35 tax legislation affect me while I'm running a limited company and working as a contractor via an adency (dwyl)?

nelsonic commented 7 years ago

Hi @jackcarlisle, great question! IR35 https://en.wikipedia.org/wiki/IR35 is the law designed to ensure that contractors are not "disguised employees". The fact that your invoices to DWYL are payable to a company (Co. "A") and DWYL's contract is with the company which can freely have anyone work on the project means you are not indirectly an employee of DWYL. It is especially good (for IR35 purposes) that you have "side projects" (paid or unpaid) and other sources of revenue (FBA products) which mean that you are clearly not a "disguised employee".

DWYL's contracts are designed to be "lightweight" (1-pagers with limited "legalese") but if you ever require the "full-length" version which is IR35-compliant (because we paid for an independent IR35 Contract Review ...) just let us know! (We might ask @markwilliamfirth to put it up on GitHub in the new year so everyone can use it...)

Hope that answers your question... let us know if not! 👍

jackcarlisle commented 7 years ago

@nelsonic by saying:

you are not indirectly an employee of DWYL

Does that mean that I am directly an employee of DWYL? Or is it that I'm indirectly not an employee of DWYL?

nelsonic commented 7 years ago

@jackcarlisle another great question and worth having 100% clear. DWYL does not have any "employees" direct or in-direct. This is by design to give everyone the flexibility to work on freelance projects.
You are not an employee. you are the director of your company. you are free to work on your own entrepreneurial projects and deliver the DWYL-related project work in any way you see fit (e.g. you could hire a competent person to do the work for you provided it gets done!).

jackcarlisle commented 7 years ago

@nelsonic ok great thank you for clearing that up! All makes sense now 😄