Name: What is IR35? - IR35 Explained
Uploaded: 2020-03-13T19:30:05.000Z
Duration: 22 min 46 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Present continuous

And if you find on this page you're probably looking for some answers to some very confusing and complicated questions.

So today I'm gonna try to break this down as simply as I can about what is Iron 35 I are 35 explained.

And we'll go through all of those questions for you hands.

Make sure you leave this page being an expert on my 35 or or thereabouts, I'm basically just gonna outline the article that is below this video for you guys.

All right, So, seriously, we want to know.

Basically, if you are freelance there any kind of contract worker you can be running your own limited company doing contract work.

You could be totally freelancer just doing work for various clients.

You could be a sole trader any time that you're doing contract work for someone and you are not a direct employees of whoever you're working for.

So they just give you payments and it's not deducted from tax or anything.

As an employee, you could be at risk of our 35 so we'll go through the I R 35 rules basically show you the points.

Marcie will look at one deciding your status in an investigation.

Obviously, they'll try their best to to return.

It's in such a way that you will be caught inside are 35.

But that doesn't always hold up in court, So we'll have a look at these rules now.

If you happen to be in a brother worker or have been in the past, they're just thing called S D.

Legislation supervision, directional control.

And basically you cannot claim expenses through umbrella.

If you are supervised, directed or controlled by the Claire working for and it's just another with HMRC can get thio you and just be like you can't claim these expenses.

You're gonna have to pay this out of pocket because you are basically controlled by the client and it's just not gonna cut it with.

Control is essentially the same thing, but you have to be sure you're not treated like an employee in an employment role.

You would be instructive pretty much all the time.

You need to do it like this and get it done today or tomorrow, whatever you'll be told what to do all the time.

As an employee, you don't really have your own agenda and your own schedule that you created a new went ahead and just did it.

The best example I can give you is a plumber.

You tell him the toy that's broke, the plumber fixes the toilet.

You don't know how to fix the toilet yourself.

You don't tell him how to do it or anything.

The better just gets on with his business, and that's essentially control.

It's important not to be controlled by your end client, and if you feel like you are, then you might want to make some changes.

Pretty soon because you could be at serious risk of being caught inside are 35 now Let's move on to the next rule of financial risk.

I want to see that you as a business or as a you know, so self employed person have substantial business risk.

And you don't rely on your end client for any kind of fallout.

So the easiest way to kind of show this is through business insurance.

It would be public liability insurance and professional indemnity insurance and in some cases, employers liability if you're running your own company.

So this insurance kind of proves a little bit of evidence.

It's more evidence to back up your claims, but it proves that your company or you as a soul, self employed person have business risk.

If you were to mess up work that you've done, or if you hired someone and they messed it up for you, then you would be liable to go fix that work at no extra cost to the end cut.

And if that sounds like something that you would do or I know it's a little bit difficult with things like I t.

As long as you've got that business insurance and you would be expected to fix stuff and sometimes not the best example for I T because it is kind of including your day.

But as long as you are expected to fix the air and cost on your own time than your goods, you've got financial risk.

Also, you have no guarantee that the client will pay you for the work you've done.

All right, Next point is brightest institution.

What it says is that you, as the contractor could bring on board some other random contractor or your own employees.

Even let's say that to the client for them to do the work that they expected you to do with no riel issue.

So maybe they have to get security checks done on them.

Maybe they want to know they want to see the person's qualifications, something like that, just to quickly check that they can actually do what you were expected to do.

If you've got that ability on, you have executed that ability than you are extremely in good position with the right of substitution.

Marcie ever asks like you know, that's like their biggest one right now is write a substitution If you have substituted someone to do the work for you, then you are pretty golden in H.

But of course, you need to have more than just just that ability to pass their tests.

So if you are not able, Thio or your contract says you are able to when you go and ask your client, can I actually send in this person to do the work for me?

And they say, No, that's a potential problem there because they've essentially the contract, and what you can actually do doesn't line up.

You can actually substitute someone else to do your work as long as I've got the same qualifications.

As long as they're able to do things work and they say yes to that, then you're fine.

And also, the best way to prove that you've gotta write a substitution is to just send in a substitute on occasion and just be like if hmrc ever asks, opens an investigation for over 35 you be like, Look, I sent in the substitute, you know, in there that there's definitely write a substitution there, says that my contract says it here, But as long as you've got that going for you.

This sounds very strange, but it's actually very simple.

Essentially, it means you are not obligated to provide further work or further service is to the incline, and they're not obligated to provide you with any more work.

So as an employee, you would be pretty much expected to stay on site on Dhe.

Even if you finish all your work for the day, the employer will be sending you more work to do.

They're gonna keep you occupied for the full full eight hours or whatever you work.

The difference is if he finished your work for that day or if you finish the job you were doing.

There is no expectation for you to carry on doing other things for that client.

And let's say your contract is a longer contract because it's like a duration of her period time working on a big project on Let's say, you know, the computer systems are not working that day.

You as a contractor cannot possibly carry on any further work for what you were doing.

If there's nothing to do, you just leave because there's no reason for you to be there, not getting paid for your time.

That's a very significant thing to look out for.

His mutuality of obligation should be in your contract as well.