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Am I truly a freelancer in the eyes of HMRC?

Discussion in 'Accounting and Legal' started by Jerrymouse, Aug 11, 2018.


Do you believe clients do not engage u in a truly freelance way + they r just avoiding tax/NI etc

Poll closed Sep 8, 2018.
  1. yes

    0 vote(s)
  2. no

    0 vote(s)
  1. Jerrymouse

    Jerrymouse New Member

    I have joined a number of recruitment agencies and every role I get is freelance so I have had to create my own limited company. The reality is, of the 7 contracts I've had, the client dictated how and when the work is done, I don't have a substitute to send in if I were sick, I don't have other client or market myself etc. I often do exactly the same role as the perm developer sat next to me. I start off on one project then get moved to another without a say or new contract, if I make a mistake I am still paid the day rate and not expected to put the error right at my own cost.

    My question is surely if HMRC were to look at how I work the reality is I am a disguised employee?

    This is really worrying but no agency will send me PAYE jobs so I'm stuck?

    Other developers laugh and say everyone does it, how can "EVERYONE" be at it if HMRC say its wrong ???

    Can someone explain how this works?

    PS only worked for private companies not public so assume IR35 is irrelevant but I still have to pass the test the HMRC have online, right?
  2. Gordie @ Danbro

    Gordie @ Danbro New Member

    Hi there,

    My name is Gordie and I'm an Associate Partner and qualified Chartered Accountant at Danbro Accounting.

    From what you've said, your working practices would *suggest* that you're inside IR35.

    IR35 is as relevant in the private sector as it is in the public sector. The difference, and I think the source of your confusion, is that in the private sector IR35 is self-assessed (whereas in the public sector it is the responsibility of the end client to assess your IR35 status). This means that it is for you, as someone working in the private sector, to determine whether or not IR35 applies.

    If you have an accountant, he or she should be able to assist you. When I speak to a new client who is an independent professional IR35 is at the top of my list of discussion points because it dictates what tax planning opportunities are available to us.

    If you're inside IR35, the company income is turned into what's known as a "deemed salary". Again, your accountant can assist with this.
    Noor2018 and Laura@FreelanceUK like this.

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