Jim McNellis

IR35 – Inside vs. Outside: What You Need to Know As an internal audit recruitment consultant specialising in the contract and interim market, I often get asked about IR35 and the difference between being inside or outside of it. Here’s a quick breakdown: IR35 is tax legislation that determines whether a contractor is a "disguised employee" or a genuine consultant for tax purposes. **Inside IR35**: Contractors are taxed as employees, with income tax and NICs deducted by the agency or umbrella company. **Outside IR35**: Contractors are considered self-employed, benefiting from more tax flexibility and operational control, often through a limited company (PSC) for payments. Understanding your IR35 status is crucial for staying compliant and making informed decisions about the contracts you pursue. IR35 determinations are made on a case-by-case basis, considering factors such as control, substitution, financial risk, and mutuality of obligation. Remember, a watertight ‘IR35-free’ contract is meaningless if the contract terms don’t align with the contractor’s actual working practices. Always ensure the contract reflects the reality of how you work.

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⚖️ Stay Ahead of Legislation Changes From IR35 to evolving tax rules, navigating compliance can feel like a maze. 🌀 That’s where The Sterling Group steps in! Our experts keep your agency up to date, ensuring you stay compliant and risk-free.💡 Let us handle the red tape so you don’t have to! #IR35 #Compliance #RiskManagement

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⚖️ Stay Ahead of Legislation Changes From IR35 to evolving tax rules, navigating compliance can feel like a maze. 🌀 That’s where The Sterling Group steps in! Our experts keep your agency up to date, ensuring you stay compliant and risk-free.💡 Let us handle the red tape so you don’t have to! #IR35 #Compliance #RiskManagement

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Big Can Be Agile So said the ad from one of the big four accounting firms in the UK That's not been my experience In fact, it's the exact opposite Of all the transformations I've been involved in, it's the small organizations that have managed the greatest success Whether that's a small company Or a small department within a larger organization Small wins Agility is to big as fish is to bicycle If you REALLY want to benefit from agility, start small

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Read this article to discover whether you need to consider IR35 if you provide your services through your own limited company to an end client: https://lnkd.in/eu5MpejE #ir35 #offpayrollworking #taxrules #taxcompliance #hmrc #tax #taxadvice #contractorlife #businesstax #taxtips

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I know we are all probably a little "over budgets" (haw haw haw 🤭) But it's the Scottish budget tomorrow (Wednesday 4th). The Scottish parliament doesn't have powers to change all of the taxes, which is why any changes/deviation from the UK can cause quite a few "quirks" in the system... and a lot of misinformation on social media - including LinkedIn 🫣 Some key taxes to looks out for: 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 - Scottish Income tax rates apply to "Non-Savings Income" only - (salaries, self employment profits, rental profits, pensions) 𝐋𝐚𝐧𝐝 𝐚𝐧𝐝 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠𝐬 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐓𝐚𝐱 - The tax you pay when you buy property (residential or commercial) - The English equivalent is Stamp Duty Land Tax Council tax rates and business rates. Hopefully, we won't see too much change. I'm not expecting anything too dramatic. Look at that, I barely criticised at all! I must be maturing 😏

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🚨🚨News Flash 🚨🚨 So excited to feature in Sage's new AI and accounting policy report Going for Growth with ACCA and Demos. It reveals the huge growth opportunity this technology presents for both bookkeepers and accountants and the wider UK economy. The report found: ✅ High levels of AI adoption in every UK practice could add £2bn to GDP and create an additional 19,000 jobs. ✅ AI adoption is on the rise. 26% of practices have implemented AI today, expected to increase to 52% in five years. ✅ Accountants and bookkeepers are technology optimists. 61% believe AI will create more opportunities than risks. ✅ Unless tackled, an AI skills deficit will restrict the adoption of AI. Only 16% feel well prepared to meet the AI skills demand. We look forward to staying part of the debate to ensure we can unleash the potential of AI across the accounting industry. 👉👉 Head to the Sage website to find out more Bee Motion | Cerana Official

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Today, the Exchequer Secretary to the Treasury (XST), James Murray MP, hosted a Making Tax Digital (MTD) event with software developers to discuss HMRC’s plans to introduce MTD for Income Tax from April 2026. We are working closely with the software industry to expand the range of MTD compatible software products available for customers. MTD for Income Tax will:   ✅ Make it easier for sole traders and landlords to get their tax right. ✅ Ensure customers have up to date, accurate information to help with business planning. ✅ Further digitise the tax system to improve customers’ experience.   To find out if and when you’ll need to use MTD for Income Tax, click the link below. https://lnkd.in/e9X4JQtD

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GET YOUR GUIDE >> https://lnkd.in/eyTKWSGX The very mention of outside IR35 working can bring fear and stress to your finance and tax colleagues. To them, it’s extra admin, complexity and risk. It’s challenging to articulate the reasons why they should be more open to hiring contractors outside IR35. So, this guide aims to support hiring managers navigate that very conversation. Facts and figures that will ease their anxieties and make the prospect of outside IR35 working feel more comfortable. We’ve enlisted the help of Seb Maley, CEO at Qdos Contractor, to support us with the facts here.

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Speaking to HMRC has been a disaster… Then they decided to reduce support… and then reverse it… So to help this, The Treasury has recently announced additional ring-fenced funding to assist HMRC's phonelines in meeting service standard targets. This decision comes after HMRC reversed its plans to permanently restrict, and in some cases close, taxpayer self-assessment, VAT, and PAYE support lines. The tax authority made this reversal just 24 hours after facing significant backlash from stakeholders, taxpayers, and professional bodies. During a session with the Treasury Select Committee, HMRC chief executive Jim Harra explained that the tax authority lacked the necessary funding to allocate more resources to helplines. The situation has been exacerbated by more individuals being brought into the tax system due to inflation and fiscal drag, while HMRC's resources have been under strain. In June of last year, HMRC's Angela MacDonald informed the Treasury Select Committee that the decision to implement a seasonal telephony model was a response to the demanding efficiency levels required by the spending review 2021 settlement. This settlement only allocated limited funding to HMRC for enhancing their digital services. The press release from the Treasury highlighted that HMRC's budget has increased by £900 million over Parliament, rising from £4.3 billion in 2019/20 to £5.2 billion in 2024/25. Despite the focus on expanding online services, HMRC's Harra emphasised the importance of improving helpline services for those who require direct assistance, including vulnerable and digitally excluded individuals. While two-thirds of self-assessment calls can be handled online, the additional funding will enhance helpline services. HMRC remains committed to its long-term strategy of digital transformation for increased efficiency.

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The Day After Tomorrow - UK Self Employed file your Tax Return by Tomorrow July 31st to avoid automatic Penalty. You still have time to pay the Tax - Avoid The Penalty - File your Tax Return Self-Employed Workers Face Steep Penalties as Crucial Tax Deadline Looms Millions of self-employed individuals face a rapidly approaching tax deadline that could result in significant financial penalties if missed, warns tax insurance provider Qdos. The deadline of July 31st marks the due date for the second ‘payment on account,’ a system that splits annual tax bills into two installments for the self-employed.

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Exciting news today from the Chancellor, Rt Hon Rachel Reeves. As part of the package unveiled, HMRC will launch a consultation on electronic invoicing (e-invoicing) to promote its wider use across UK businesses and Government departments. The consultation will gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake. Although we have Making Tax Digital (MTD) for VAT in the UK, we are slightly behind the curve compared to other countries. EY’s Future of VAT in the UK report was clear that many businesses here are keen to embrace a more advanced digital VAT world. Since the EU VAT in the Digital Age (VIDA) proposals were announced, EY has been helping businesses ready themselves for significant changes as different EU countries introduced/planned to introduce their own e-invoicing and real-time reporting requirements. Introducing e-invoicing is a complex task for any Government and for businesses to meet new rules but it is something that fits in an ever changing digital world of the future. When the results of the consultation are released we will publish more commentary to update on the opportunities unlocked. More info on the press release can be found here - https://lnkd.in/en2U4MBC #indirecttax #einvoicing #eytax #saascoe #gtes Chiu Ming Man | Ramy Rayan | Lillian Chen-McMahon (BA, PGDip)

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I can't believe the Accountex virtual summit is just around the corner again! And guess who's speaking about MTD for Income Tax alongside Sage and HM Revenue & Customs 😉 Get signed up now - link in comments: #ACXVirtual

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