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IR35: Working as a contractor via Aspire

We’ve been raising the roof about IR35 quite a lot recently, so if you hire contractors, or you are a contractor, your ears should have perked up by now. For context – IR35 is a tax rule that has been around since 2000. From 2017, it hit the public sector, and now, the private sector in April 2020.

Confused? Here's some advice to get started: What does IR35 mean to me? 

Below are a few ins and outs of what you can expect as a contractor working via Aspire:

What do the changes to IR35 rules mean for me as a contractor via Aspire? 

The biggest difference lies with how this tax is paid, and who has the responsibility to determine whether you are inside or outside of IR35. This is based on your working parameters. If these are the same as an employee of Aspire, we will be required to deduct income tax and Nation Insurance contributions from your salary, but if not – nothing changes for you.

How am I personally affected as a contractor via Aspire?

Every new brief will be assessed with regards to ‘inside IR35’ or not. This will be made clear at the beginning of each project. You will be paid as normal but with the difference of National Insurance deductions.

Will there be any process changes for Aspire?

As normal, we will work with you and the client to agree the best rate for the project. From now on, every new project you undertake will be labelled as ‘inside’ or ‘outside’ of IR35 so it is clear and upfront as it should be. If it falls inside IR35, we will set up any income tax and NIC deductions for you. 

Are Aspire contracts already IR35 friendly?

Each project and each client will be different to the last, hence why we will clearly label each project brief, so you know what to expect. 
While you will still invoice the same amount, as agreed with the client, if it falls ‘inside’ IR35, you will be paid subject to the umbrella company that will be making the deductions from your fee. Deductions will be based on how much you earn and your tax code.

What if I am working as a contractor for companies around London on a 3, 6, or 12 months basis?

Whether you’re in or out of IR35 is based on the way you work. It is the client that determines this. 

Is it possible to work inside and outside at the same time?

Yes, this is possible as each new project and client will be labelled based on that job, even if you’re doing different jobs at the same time. 

At the end of the tax year, the umbrella company will send you a P60 stating your earnings, tax and NI payments for your tax return, with your PSC company income and expenditure. If you have an accountant, you will simply pass on this P60.

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