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Frequently asked questions about
IR35
Does IR35 apply to non-UK residents?
Yes, IR35 legislation can apply to non-UK residents who provide services to UK-based clients through a personal service company (PSC). However, its applicability depends on various factors, including the individual's residency status and the nature of their work.
How much does IR35 insurance cost?
The cost of IR35 insurance varies depending on factors such as coverage limits, the size of the policy, and the insurer. Premiums can range from a few hundred to several thousand pounds annually.
Can contractors and businesses purchase IR35 insurance?
Yes, IR35 insurance policies are available to both contractors and businesses, providing tailored coverage to meet their specific needs and circumstances.
What is the difference between inside and outside IR35?
Inside IR35 refers to contractors who are deemed to be working in a manner similar to employees for tax purposes, subject to PAYE taxes. Outside IR35 refers to contractors who operate as genuine businesses and enjoy more favorable tax treatment.
What are the consequences of being caught by IR35?
Being caught in violation of IR35 may result in increased tax responsibilities, fines, penalties, and potential legal issues with HMRC.
How can I prepare for IR35 changes?
To prepare for IR35 changes, contractors and businesses should assess their working arrangements, seek professional advice, and consider IR35 insurance.
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