OK, let's get back to the thread ...
There has been a great deal of chatter amongst IT contractors about the forthcoming roll-out of HMRC IR35 regulations. Many of these guys have been operating through "umbrella" companies, which have offered various advantages (such as being able to offset certain expenses against tax). It would seem that IR35 is going to challenge (or indeed, put an end to) such practices, and may even demand the payment of tax on a retrospective basis. I have heard that quite a few IT guys are looking at a substantial hit, and are simply giving up (whilst a few are talking about setting up as an offshore entity)!
Those freelance IT dudes seem to be on many times what I was ever likely to achieve, but surely biomed techs working on short-term assignments in NHS hospitals are also going to affected by the changes.
The jargon seems to be "inside IR35" and "outside IR35". It looks like under the new rules "contractors" who are deemed "inside IR35" will no longer be able to deduct valid business expenses (and even be unable to pay into a pension
before personal tax, for example). Fair enough (perhaps), but to my mind all that will depend upon who actually decides if an Agency Tech is "inside" or "outside" IR35. From what I have heard from
locums (healthcare professionals of various type), it may very well be the "paying client" (
ie, the Trust) who decides. So we could have cases where one assignment is deemed "inside", and another "outside".
Does anyone have any thoughts about all this? Maybe the Agency Tech (in the traditional sense) is a thing of the past anyway. Are there any left?
Speaking for myself, it's now eleven years since I last worked through an agent (so I can't really be considered "current" on all this); but I was awaken from my slumber recently by someone seeking advice. Although I am aware that some others used an umbrella company, my own
modus operandi back then did not allow me to claim accommodation and (or) travel expenses (so PAYE and NI was deducted by the agent).
