Do IR35 changes apply to me?

IR35

IR35 reforms are set to hit the private sector in April 2020 and a lot of contractors are still none-the-wiser as to whether or not it will directly affect them. It can be hard to gauge because to know if it will affect you, you need to know if it will affect the businesses you work for.

We’ve pulled together a quick guide to help you understand if IR35 reforms will affect you or not. However, this is by no means exhaustive and we recommend chatting with your clients as well.

Read more

Why you might want to return to self-employment

Self Employed

So, you were self-employed for a while, but then got lured back to the bright lights of regular employment.

Perhaps it was for a great career opportunity, perhaps it was for the guaranteed monthly salary, perhaps it was because you wanted to take advantage of a maternity or shared parental leave package, perhaps you were just sick and tired of doing your own admin.

Whatever the reason, you went back and spent some time as an employee and you’ve been enjoying it. Let’s face it, it’s quite nice not having to do your own taxes every year.

Read more

I’m a Celebrity…and I’ve been caught by IR35: What lessons can we learn?

IR35

Lorraine Kelly. Christa Ackroyd. Eamonn Holmes. Robert Glenister. Kaye Adams. No, it’s not the latest Strictly line-up. The above TV stars are just the visible few of the potentially large number of well-known names who are likely to have been caught-up in HMRC’s ongoing IR35 crackdown.

As anyone with half on eye on the news will know, some have fared better than others. Lorraine Kelly, or rather ‘Lorraine Kelly’, avoided a substantial fine by claiming that her happy-go-lucky TV persona was just that – a brand, and not a reflection of the real person. Kay Adams was judged to be sufficiently detached from the BBC to be outside IR35. Ackroyd was not. Glenister lost due to a combination of a lack of understanding and flimsy, poorly prepared legal arguments. Holmes’ case is still going through the courts, with £2m of tax at stake.

Read more

Substitution Clauses: What, Why and How

Substitution Clause

One subject that has come up repeatedly in our recent blogs, especially those focusing on IR35 regulations, is the idea of a “substitution clause”. But what exactly is a substitution clause, and why do people keep urging you to have one?

Most contractors and freelancers operate as individuals, taking on projects themselves and seeing them through to completion. However, a substitution clause is a section within your contract that tells your clients of your right to provide an alternate person or persons to carry out the work that you have been contracted to do.

It can be useful if:

  • you’re ill
  • you have a family emergency or other issue
  • you’re on holiday or abroad for another job but you have clients that need looking after
  • you want to temporarily step back from work for some reason

Read more

Brand Identity: The Basics

Brand Identity

“Your brand is the single most important investment you can make in your business” Steve Forbes, editor of Forbes business magazine

“Branding is what people say about you when you’re not in the room” – Jeff Bezos, founder and CEO Amazon

You might think that brand identity is a concern only for big companies, or that, as a small business, you can’t afford to spend a lot of money on flashy marketing. But building a brand identity is all about communicating a consistent message about who you are and what you do, and it needn’t cost any money at all. This blog explores the basics of brand identity for contractors and freelancers and offers some simple principles for building a unified brand around your core asset: you!

As the quotes above tell us, branding isn’t a one-time marketing exercise. Rather, every encounter that a client or potential client has with your business should be considered part of your branding. Every interaction is an opportunity to build a positive relationship, and to communicate your story, values and benefits.

Read more

Five signs that you’re ready for self-employment

Self-Employment

Everything is starting to feel a bit fresher and warmer. But sometimes the signs of spring can make going into the office every day feel like more of a slog. April is a great time to consider your position and decide whether you are ready for your next challenge. Many contractors held “normal” jobs for years before they decided to go it alone and take advantage of the freedom, flexibility, and financial advantages that can come with being self-employed. But how do you know when you’re ready to take the plunge, leave the 9-to-5 and take the reins of your own company? Here are five signs that it might be time for you to go self-employed:

Your reputation precedes you

If you are fighting off calls from headhunters, or if clients, customers or partners of your current employment keep trying to twist your arm into doing some extra bits for them “on the side”, then you should definitely consider giving contracting a go. Your expertise and experience are clearly visible to others and therefore should be easy to market, and you have a pre-existing group of potential clients to target for those precious first few contracts.

Read more

What risks am I taking by operating without insurance?

Insurance

Every contractor wants to keep their business outgoings to a minimum. When you’re looking to reduce your business spending, it can be tempting to cut away at expenses that seem extraneous to your requirements: a business telephone contract that you’ve never used, expensive professional software licences when a free program works just as well, memberships of professional bodies where you don’t use any of the benefits. But there’s one contractor cost that should never be cut – business insurance.

It’s true that you may never claim on your insurance. But there are many risks to operating without proper business insurance in place, from the small to the serious. Even without the need to make a claim, insurance is working for you every day, helping you to secure clients, meet the requirements of contracts and as an IR35 indicator. In the event that things go wrong in the course of business, or you encounter an unhappy client or third party, insurance becomes even more crucial to protect your livelihood, mental health and even your home. This blog looks at the escalating risks of not having proper business insurance in place if you are working as a contractor.

Read more

The Ongoing Issue of Late Payment

Late Payment

Although (like everything else) it might have been a bit overshadowed by Brexit, there was good news for contractors and freelancers buried in the Chancellor’s Spring Statement last month – a crackdown on late payments. It’s a scenario that will be familiar to almost every contractor and freelancer; the tiresome and often worrying time spent waiting and chasing for payment of invoices that are well overdue.

Read more

Mortgage Tips for the Self-Employed

Mortgage

Read on below for a guest post from our good friends at contractor mortgage specialists CMME:

Becoming self-employed isn’t always for everyone. It’s a decision that can have consequences. You may feel alone in your journey when it comes to financial advice, especially when your high street bank doesn’t understand the way in which you work when applying for a mortgage – something that can hinder your opportunity.

It’s a common myth that the self-employed will be declined a mortgage or would need to have been self-employed for 2 to 3 years. This isn’t necessarily true and, with support and guidance from the right specialist mortgage broker, you could get a mortgage that reflects your true earnings.

Whether you’re a first-time buyer or a professional looking to re-mortgage, CMME have created this helpful guide outlining everything self-employed people need to know about getting a mortgage.

Read more

Fit and Flexible

Fit and Flexible

If you’ve spent the last few weeks trying and failing to make good on your New Year’s Resolution to get fit we might be able to help. It’s not always easy for contractors and freelancers to find time in already jam-packed schedules to get down the gym. And if you work from home, it’s not as simple as cycling to work, taking the stairs instead of the lift or getting off the bus a few stops early. But our businesses are only as fit and healthy as our bodies are, so how can contractors and freelancers make sure they get enough exercise?

Read more