Freelance Informer publishes IR35 Guide

Freelance Informer, the favourite read of many independent contractors, has published a 42-page IR35 guide as a supplement to the 14 April edition.

The supplement, titled Life after IR35 – the definitive guide includes a number of articles offering advice on alternative company structures to PSCs, IR35 proof contracts and the 5% allowance. There are also a couple of articles on working overseas, looking at both opportunities and highlighting potential pitfalls.

The most interesting article looks at IR35 and agencies. Well known agents explain that where the client refuses to alter a contract, the agents are powerless to insist on a change. There is no mention of those clients being potentially liable for employment rights from their disguised employees as a result. The article also suggests that many independent contractors may be forced to work as permatemps – that is, employees of their agency. The agencies intend to increase their services to contractors, such as offering training, in order to make this happen.

The guide is heavily sponsored by Financial Advisors and Accountants, as well as a few agencies – perhaps something offering independent advice would have been better, especially when one well known agent advises:

"Unless individuals are positive that they are outside the IR35's grasp they are better off admitting that they are non-compliant, instead of trying to reach a compromise and paying the price anyway when the Revenue slaps on a 200% fine."

Makes you wonder if the agents have fully understood the feelings of contractors regarding IR35.