We met contractors who started contracting for two reasons: 1. The UK Employment Laws - Employees have no rights until they have been with a company for two years or more. That means that HR can email you and say, "your job is at risk of redundancy" (legal jargon for you are being made redundant) and they can let you go that day if they want. You are paid your notice period and unused holiday pay, but are not entitled to redundancy pay and cannot claim unfair dismissal. 2. Brexit - In 2019 after Teresa May lost the Conservative majority and the MPs were trying every way possible do disrupt the withdrawal bill. This effected the permanent job market and contracting was really the only viable way to make a living and the benefits of operating through a business were obvious. We know that the IR35 reforms are coming in and the Government will not change its mind on it. There have been enough protests and even support from David Davis MP did make a difference. As you said in your previous video, things will open up when good contractors are needed for a project. For example, if you a working inside IR35 at a day rate of £600 for a client that rolls the contract every 6 months, you are only like to go if you find something more lucrative or it is outside IR35.
Something we mentioned when looking at perm v inside IR35 contracts. Because companies give employees benefits such as annual leave, training and host of non taxable benefits, the taxable salary is less. So despite the UK employment laws, going permanent is the best way to ride out the storm.
Nothing more certain in life are Death and Tax's! Three years time every contractor will be inside IR35. Outside will be impossible in the UK. They will tweak IR35 so you cannot escape. Eventually Company's will just have to pay loads more to get those few very skilled workers they need for a project and I am not talking about BAU roles.
I only contract for places that fall outside of ir35. Unless you want to lose over 30% of your money with zero benefits of contracting and zero relief for the cost of it, stay outside ir35. Eventually big companies inside ir35 like BAe will lobby the gov to scrap it as they simply cant get the workers. Seen it in portsmouth dockyard for the last 2 years, no one is going there because its inside ir35 and no longer lucrative.
Yea ...last year I pay 5 k tax ....from now I will work just 6 month / y ....and 6 I will live in Filipine, Indonesia ....and I relax 🤭. If I work just 6 month per year ...I will pay around 1.5 k in tax . If I work all year I will pay 10 k 🤣. Yhe government just will lose from me 3.5 k per year !
The government is not going to make that 1.2B unfortunately, it will be counterproductive for them based on so many parameters. but hopefully, a natural reset will kick in after COVID.
Yes, if you work outside the UK that's different again. Im not a tax expert, but the main thing is where you take the money out. If you take money out in another country as you work remotely, the UK tax will probably no the applicable. If you work abroad though, you ar more likely to get an outside role anyway
If your inside IR35 what exactly do you pay? is this correct for limited companies under the banner of personal service companies: Income tax Employers and employees NI Corporation tax ??
@@jondjones So basically I'm gonna be left with nothing. Great!! Time to close up and move on. Thank you HMRC - kicked me nicely in the balls on that one.
We met contractors who started contracting for two reasons:
1. The UK Employment Laws - Employees have no rights until they have been with a company for two years or more. That means that HR can email you and say, "your job is at risk of redundancy" (legal jargon for you are being made redundant) and they can let you go that day if they want. You are paid your notice period and unused holiday pay, but are not entitled to redundancy pay and cannot claim unfair dismissal.
2. Brexit - In 2019 after Teresa May lost the Conservative majority and the MPs were trying every way possible do disrupt the withdrawal bill. This effected the permanent job market and contracting was really the only viable way to make a living and the benefits of operating through a business were obvious.
We know that the IR35 reforms are coming in and the Government will not change its mind on it. There have been enough protests and even support from David Davis MP did make a difference.
As you said in your previous video, things will open up when good contractors are needed for a project. For example, if you a working inside IR35 at a day rate of £600 for a client that rolls the contract every 6 months, you are only like to go if you find something more lucrative or it is outside IR35.
IR35 is getting binned 🎉
Certainly your Cycles perspective has come true 🚴💫
Another video proving Jon is awesome at everything he does.
Thanks.. legend!
Maybe it's time to do another video for 2022, after the mini-budget, where off payroll IR35 reforms to be repealed from Apr 2023...
Expect one next Sunday 😉
Hey thanks for sharing your positive outlook on making the most of our current situation.
The government messed up with this. Most HGV drivers are LTD. And can no longer trade.
Thanks for sharing these valuable tips!
Thanks 😊
Something we mentioned when looking at perm v inside IR35 contracts. Because companies give employees benefits such as annual leave, training and host of non taxable benefits, the taxable salary is less. So despite the UK employment laws, going permanent is the best way to ride out the storm.
I’ve never been invited to an office party or even company announcements as a contractor
I'm the other way around, I've have never not been invited to a party. Maybe it's your deodorant 😂
As a perm I'm jealous
Nothing more certain in life are Death and Tax's! Three years time every contractor will be inside IR35. Outside will be impossible in the UK. They will tweak IR35 so you cannot escape. Eventually Company's will just have to pay loads more to get those few very skilled workers they need for a project and I am not talking about BAU roles.
my projects were always away from home (engineering) so inside IR35 is not an option due to expenses
I only contract for places that fall outside of ir35. Unless you want to lose over 30% of your money with zero benefits of contracting and zero relief for the cost of it, stay outside ir35. Eventually big companies inside ir35 like BAe will lobby the gov to scrap it as they simply cant get the workers. Seen it in portsmouth dockyard for the last 2 years, no one is going there because its inside ir35 and no longer lucrative.
How can umbrella get away with charging apprentice levy and employers tax from your hourly rate?
Great video man! Liked :)
Thanks a ton!
about the difference, I would say the major one for me was the risk. had indemnity insurance worth 5 mil.
Are you in IT? This is definittly valid and I've refused to release software to product on many times if it hasdnt been signed off so I wasn't liable
Yea ...last year I pay 5 k tax ....from now I will work just 6 month / y ....and 6 I will live in Filipine, Indonesia ....and I relax 🤭. If I work just 6 month per year ...I will pay around 1.5 k in tax . If I work all year I will pay 10 k 🤣. Yhe government just will lose from me 3.5 k per year !
what in the world are you doing with the Romanian LEI there? By the way, I'm from Romania and try to get into IR35 or anyway, take your job :)
Haha.. I went a few years ago to see the sights and drink some beers. Had a great time :) Nice, good luck!!
I have taken a permanent job at a bank no point with contracting within IR35
Good move! I'm perm now. It makes sense
The government is not going to make that 1.2B unfortunately, it will be counterproductive for them based on so many parameters. but hopefully, a natural reset will kick in after COVID.
Is it only for UK citizens? Can I take up inside IR35 job from UK employer and work from some other country?
Yes, if you work outside the UK that's different again. Im not a tax expert, but the main thing is where you take the money out. If you take money out in another country as you work remotely, the UK tax will probably no the applicable. If you work abroad though, you ar more likely to get an outside role anyway
@@jondjones Thank you ✌️for the reply
If your inside IR35 what exactly do you pay? is this correct for limited companies under the banner of personal service companies:
Income tax
Employers and employees NI
Corporation tax
??
employment taxes, so national insurance and PAYE taxes, also you will likely pay umbrella company fees
@@jondjones So basically I'm gonna be left with nothing. Great!! Time to close up and move on. Thank you HMRC - kicked me nicely in the balls on that one.
95% was the Supertax rate, not 99%. ''This is how it's gonna be, one for you ninetenn for me!'' Taxman by Lennon = 95%
I take it back, 95% is OK 😂😂😂
Hah. I sang that same line to myself while watching.
Why do you have Romanian cash throwing in the air at the beginning of the video? ..😉
haha.. I like to travel and I visited Bucharest a few years ago. Had a great weekend but forgot to exchange my money. :P
U.K. gov is disgusting
👍
HELL MET MAN - Protesting against the UK's IR35 Regulations - TH-cam