Inside IR35 Meaning
Anybody who contracts inside the UK will face the situation where each and every contract/assignment has to be judged as to its IR35 status. In the past this determination was done by the contractor themselves, however as from April 2021 it’s now a decision for the client. If they say the role is one that falls inside IR35 and you accept that role then you are deemed to be working inside IR35.
What Does Being Inside IR35 Mean To Me?
The short version is it means you have to pay your taxes as if you were an employee. Simple as that. The options available to you are to go on your agencies (if there is one involved) payroll, however many agencies don’t run their own payroll. In this instance you are left with 2 options, either receive a deemed payment in to your limited company or find an Umbrella Company to employ you and process your payroll. Don’t have a Ltd Company and your agency doesn’t operate its own payroll then using an Umbrella Company is your only option.
So taking a contracting assignment Inside IR35 limits your options, that’s what it means. It means taking away your flexibility as a self employed person.