April 2007 saw the most significant tax changes for contractors since the introduction of IR35 seven years previously. Since the Treasury announced its publication 'Tackling Managed Service Companies' in December 2006 there has been much confusion and anxiety.

read guide

Since the introduction of the IR35 rules contracts have never been more crucial for contractors and freelancers. Contracts outline what each party wants, needs and expects, but perhaps more importantly, they also form a legal framework to work within.

read guide

Common questions and answers relating to contractors, IR35 and money laundering regulations.

read guide

The question of employed or self-employed is fundamental to how IR35 is applied.

read guide

IR35 is designed to deal with “disguised employment” whereby people worked as self-employed – and got all the tax advantages – but were in reality employed. Basically the government decided contractors and freelancers were trying to avoid tax while doing similar work to those permanent employees.

read guide

Many more contractors will now form limited companies as a means of complying with the complexities of IR35. By forming a limited company you will be in control and there will be no third party administrator to deal with.

read guide

On the face of it money laundering and contracting seem miles apart. But because of IR35 legislation they are in fact too close for comfort. Money laundering – the process whereby criminals conceal, transfer or seek to retain the proceeds of their crime – comes under the Proceeds of Crime Act 2002.

read guide

Offshore companies have been used in the past by contractors to reduce tax liabilities. Offshore companies are businesses that are registered and conduct their 'central management and control' outside of the UK. The historic benefit of this kind of company structure was that profits are not subject to tax.

read guide

Section 660A is part of the Income and Corporation taxes Act 1988 and is also known as the “settlements legislation”. It is now being applied more aggressively against the contracting industry as part of the shake-up on tax and personal service companies and particularly affects ‘husband and wife personal companies’.

read guide

If you choose to use an umbrella service you are essentially a PAYE employee of the umbrella. Your client or agent enters a contract with the umbrella for your services and you enter a contract with the umbrella. You send your timesheet and expense details, tax and NI are deducted before you receive your money from the umbrella company.

read guide