The 123 Guides

IR35

Business Structure Review

The 123 Way

What is included as standard for a fixed fee of £65.00 + vat per month:

Full Contracting health check - is your business performing as best it could - we'll ensure it is.

If you're new to freelance contracting, we'll ensure you start trading in the right way.

Then you can sit back and relax, your ongoing HMRC & Companies House compliance will be taken care of.

The 123 Way - simple & stress-free.

IR35 is a piece of tax legislation that was introduced in April 2000 with an aim to stop what HMRC calls “disguised employment”. The idea was to
increase the tax paid by people who set up their own Limited Company when they were clearly an employee of their client.

The Basics

You are “caught” by IR35 if you work for a client through your own Limited Company either directly or via an agency and the terms of the contract either on paper or your real world working conditions are such that in reality you are really an employee of the client.

The main issue is to figure out if you are really ‘employed’ or ‘self-employed’. As every case is so different, HMRC has not set out a statutory definition of employment, therefore they will look at both your contract and your working conditions to see if you are caught by IR35.

One of the best things to do is get your contract reviewed. This will give you a very strong idea of if your contract is caught by IR35 and the changes that need to be made so that it is not. We offer a Contract Review service that we recommend all contractors and freelancers take up.

In reality HMRC has found it very hard to enforce IR35. Many contractors are willing to take cases to court and more often that not they win. We would urge all contractors to see IR35 as something you need to learn and understand so that you can take steps such as having your
contract reviewed to ensure you are not caught by it. This could save you a lot of time, hassle, stress and money in the long run.

The coalition government in 2010 has decided to review IR35 and has tasked the newly formed Office of Tax Simplification with re-thinking how to implement or re-design the legislation.

Running a Limited Company

Director's Responsibilities

Company Bank Account

Payroll

Salary

Dividends

Limited Company Accounts

Corporation Tax

VAT - The Basics

VAT - The Choices

123 Income Illustrator

The 123 Income Illustrator shows you what you can expect to take home from a given contract.

It also compares the differences between freelance contracting through your own Limited Company, through an Umbrella Company, as a Sole Trader or if you were to return to full time employment.

The123 Income Illustrator

Invoicing

Expenses

Expenses - Detailed Guide P1

Expenses - Detailed Guide P2

IR35

IR35 - Detailed Guide P1

IR35 - Detailed Guide P2

Company Secretarial

123 Referral

We run a simple referral programme where for every client you refer to The 123 Way we will give you £123.00

For more information check out the link below:

123 Referral

Personal Tax

Importance of Information

Important Dates

Being a Sole Trader

Calculators

123 Contracting News

The 123 Blog

To keep up-to-date with tax legislation and 123 news check out the 123 Blog.

The 123 Blog

Disclaimer:
This information is for general information only. No responsibility is taken for any action taken or refrained from in consequence of its contents. Always seek professional advice before acting.

About us

Running a Limited Company

Contractor Expenses

Freelance

Freelance Case Study

Limited Company Accounts

Being a Sole Trader

Tax Return

Business Structure Review

Business Banking

Umbrella vs Limited Company

VAT Registration