Staying Outside IR35
It is very important for contractors that they are staying outside IR35. Contractos who are outside IR35 tend to use limited companies. Those who are caught by IR35 tend to use umbrella companies.
Umbrella company contractors pay, on average, £10,000 a year more in tax and national insurance contributions than limited company contractors.
Whether they are inside or outside of IR35 is dependent on their contracts and, most importantly, their working practices.
It mostly depends whether contractors are able to do tasks independently at their client’s sites or whether there is a lot of supervision in their work.
The more they differentiate themselves, in their working practices, from permanent employees the better.[caption id="attachment_853" align="alignnone" width="233"] Staying Outside IR35 is crucial for contractors[/caption]