Name: MY THOUGHTS ON IR35 - What IR35 is REALLY about and its impact on companies and contractors
Uploaded: 2020-03-13T03:11:49.000Z
Duration: 9 min 43 s
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I'm biased, you know, Our older I wanted to be fair.

It would be this'll is resurrect recruitment solutions inset with the weekly videos in the subjects of management leadership.

Stay forgets his prescribed by channel and click the bell.

I don't want to just sit there and go Jenna what I offer.

Let's say, Yeah, this is This is the end of the world kind of stuff really brought, but try to be unbiased about our 35.

Stands for Inland revenue are called for five.

Well, I wanted to have a quick look at the government website, and we actually see that focus, but literally it comes out as I are.

35 is a piece of legislation that allows Hmrc to collect additional payment or a contractor is an employee in all but name if the contractors operating through an intermediary, such as a limited company on Dhe.

But for that intermediary, they would be an employee.

Their client, I are 35 kicks in I R 35 in essence, is attacks that's coming into tax contractors.

The idea of it being the contractors at the moment are doing work on behalf of companies on paying less tax for a job in any other walk of life.

They could do it by being employed for the company.

The only people exempt for nigh are 35 basing people who wouldn't who would do a job that that company, no way shape or form would facilitate as an employee of the business that baseball is an external resource to do the job.

So the idea is we're not going to allow them to do it anymore.

Unless the company can demonstrate this employees it would do a job or is doing a job has absolutely nothing to do whatsoever what the company do in any way, shape or form.

And they couldn't have a permanent employee doing it, and therefore they need to go to an external company or an external resource to bring that ability in.

Because it's not just not some of the company would do normally.

That's the only instance that they would be exempt from it.

That's the idea of where I are 35 comes in.

It's basically to cover up a loophole when a problem comes of I R 35 really in the companies and looking at it and going, we've got this contractor on board bringing these guys in.

You've got skill set that I wouldn't normally have yet the government of going, Yeah, that kind of ease.

Unfortunately, they can do that job for you could employ some of this.

You could employ someone for that, so you get in instances where people are basically saying this is not something we would employ.

Yet the government ago in yeah, that kind of easily or or four i R.

35 come live in April 2020 to the private sector is already actually being involved with public sector for a couple of years now.

Well, look, I'm gonna be honest with you.

I think it's based in number excuse to bring a taxi in Australia.

So is what the government say I offered five is And there's my own opinion.

Realistically, as enough attacks that the government can put on you, you've got to bear in mind is already taxes on income tax corporation taxes, businesses, health care, pensions, inheritance funerals, attacks on death pain, car tax, road tax, TV licenses basically almost attacks, isn't it?

The tax on bloody everything, it seems if we're already paying enough tax people prying the rough times if you're an employee of the company, got a very minor pain tax for this paying tax that point taxi everything.

And if you're a contract here already, Avenue declare your inland revenue tax in Lear for your tax returns and attacks on my are 35.

We're talking about 2040 maybe 50% depending on the amount of rain depend on amount of income they would have.

It is if you're a permanent employee of the company.

Now, that is a massive amount of money for a contract to absorb.

Some people might say, Well, contractors, they get paid more money.

Why am I a Zen employee of a company paying tax paying 20% 4% 50% contracts, getting away with it.

A very minor lot of contracts will spend a lot of time out work.

You're getting paid a salary guaranteed every single month.

If you're even hourly rate, you might get paid overtime, bonus wherever, and you get certain benefits of that company.

Security could get uneven, like basically the contract.

Whatever reason there's plenty of loopholes in contracts is all very well going.

Well, they get paid more money, but that extra money is gonna facilitate them when they're out of work.

The issue here is gonna be if you're a contract, are you really gonna be carried on doing contract when you're thinking about going to permanent work for someone I'm gonna end up getting the same money as I do when I'm a contractor.

Why would a new contract in the first place?

But if you're a company, it needs someone to go and do a legitimate contract for them.

And you can't find any contract because the real permanent employed or you've all of a sudden I gotta pay him such an extraordinary amount of money Now t tempt them away from going abroad.

I our faith, is gonna impact the companies themselves.

Cos at the moment are basically having to pay quite a high amount of money to contract to get him on board, do a particular job.

But you wouldn't be out to get that skill set in unless you paid someone a decent amount of money.

Now, theoretically, if the contract's gotta pay the tax anyway, it doesn't make any difference to the company.

But you've got a very minor is a massive skill shortage in this country.

If those same contractors of thinking right, well, I don't fancy paying 24 year, 50% tax in the UK hanging them in my skill set to quite in demand abroad, they could leave the country if you've got a shallow talent pool already in this country on that talent pool was shallow enough fighting to warrant people being able to be paid high volumes of money because they're a good because they're so in demand and therefore they can be a full time contractor.

And you have got broad known that money's just gonna shrink the pool of talent even more.

I are 35 actually only live in the public sector, and some people say I was working for the public sector is fine.

There's no problems of it gets in a right.

The public sector is funded by the tax payer already.

So basically, the taxpayer is paying for the public sector to employ contractors who would pay more tax.

There's been paid back in the system to provide a tax that's a big looper.

I can't even get the words around that it kind of works because the public sectors already funded by the tax payer with private sector ain't funded by the tax payer that money's coming from companies themselves if those companies have got paid more money to get contracts on board because there's less of them about because a lot of them have been either permanent employees going abroad, going to companies that pine him silly money.

It makes it really difficult to compete if you don't have that skill set so jobs can't be done, you become uncompetitive.

Is a company, in my opinion, that's the way the government just getting more money from people already doing the job.

It's just squeezing more money out pop from employees.

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MY THOUGHTS ON IR35 - What IR35 is REALLY about and its impact on companies and contractors

stuff

massive

ridiculous

permanent