The introduction of IR35 (in April 2020)

[Gediminas]

Some news for our UK residents.

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To compound this, the tax situation for freelancers and contractors – who provide most of the digital skills banks need – in the UK looks set to change The introduction of IR35 (in April 2020) shifts financial liability for defining the employment status of a freelancer from the individual to the employer. With 6% of the UK financial services workforce a contractor, this impacts a significant number of people and couldn’t come at worse time.
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Full link to the story - Times are a changing - Global Banking & Finance Review
IR35 changes - IR35 Changes 2020 - Guidance for Contractors (Updated December 2019) - Taylor Hopkinson

 

[Martin Everson]

I know many IT contractors in UK will be upset about that especially those earning £500 a day who will now be hit hard with tax.

 

[AuntyDoris]

I know people quitting the country, especially financial service contractors

 

[Martin Everson]

I know people quitting the country, especially financial service contractors

Yeah I know a IT contractor who has just accepted a role as an internal member of staff but in the Singapore office of his company. I reckon the move by UK will just backfire if they think people are not mobile.

 

[Walter Rowe]

That was one of the reasons why I left and took a contract offshore.UK will now get zero taxes from me going forward

 

[JohnLocke]

It will take some time for the UK to find them self again I believe. In the beginning of such a big chance everything is chaos once things get settled it will most often went out for the better.

 

[Macer]

I am looking to move out of uk as a non citizen it contractor. Any suggestions on where to open new LTD?

 

[Martin Everson]

Depends where your clients are and where you are moving too. You would need to check your are not jumping out of the frying pan and into the fire.

 

[Macer]

Currently got my Client in UK, but I am a legal resident in Brazil also an EU citizen.

 

[Macer]

Currently got my Client in UK, but I am a legal resident in Brazil also an EU citizen.

 

[Martin Everson]

@Gediminas Seems IR35 is delayed for 1 year now because of COVID 19 .

IR35 reforms to be delayed for a year due to coronavirus

-------quote start

Chief treasury secretary Steve Barclay this evening announced that the IR35 tax reforms would be pushed back by one year, less than a week after the controversial measures were confirmed in the Budget.

Speaking at the despatch box in today’s Budget debate in the Commons, Barclay confirmed that the changes, which will clamp down on tax avoidance by targeting contractors for companies who are, in practice, providing the same service as employees, would not go ahead in April as previously expected.

Instead, the measures will come into effect on 6 April next year.

------ quote end

Next UK brexit plans will be cancelled due to COVID 19 and UK will rejoin EU with freedom of movement now greatly reduced .

 

[Macer]

Private LTD (must be 2 owners with minimum 10% share ownership for minority owner) for Brazilian residence, is having a flat 6% tax on gross income paid as dividend, no deductions for company expenses are allowed.