Ask any contractor which piece of legislation causes them the most headaches and they will nearly all give the same response – IR35. The controversial law has been labelled a thorn in the side of many freelancers, due to its complex nature.
To combat this, many contractors turn to accountants for advice. However, a new study by news site ContractorCalculator finds that a large number of freelancers are paying more tax than they need to, due to the incorrect information provided by so-called ‘experts.’
More than half (56%) of contractors surveyed falsely believed that receiving a salary of £10,000 or more would automatically protect them from IR35, while just 9% were aware that low wages and high dividend was the most tax-efficient course of action to take. This comes despite 92% of respondents claiming they were at least fairly familiar with the regulations. … Continue reading