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IR35 - Self-employed to pay more tax


IR35 - Self-employed to pay more tax

New laws have come into force meaning around 170,000 self-employed workers are set to pay more tax. The change to off-payroll working rules - IR35 - hits those working in the private sector who pay less tax by setting themselves up as private companies. For now, contractors who work for small businesses will continue to determine their own employment status. However, contractors providing services to medium or large-sized private sector clients will need to get an employment status determination from the client. Ed Molyneux, co-founder of accounting software firm FreeAgent, told The Sun he is worried the change will "come too soon" for many contractors. He said: "This is the most significant tax change in the freelance and contracting economy for years. It essentially pushes many people who are contracting within the private and private sectors into quasi-employment, albeit without any of the protections that t hey would receive if they were actual employees. But those who will be most impacted are the same freelancers and contractors who have been worst affected by the pandemic, and who are still dealing with the ongoing economic fallout from it."


Read more: Daily Express


 


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