Finding a finance contract job outside of IR35 can be challenging, but it`s not impossible. In this article, we`ll explore what IR35 is, why it matters, and provide tips on how to find finance contract jobs that are exempt from IR35.
What is IR35?
In a nutshell, IR35 is a set of tax regulations that were put in place by the UK government to prevent tax avoidance by contractors who are essentially employees in all but name. The regulation is designed to ensure that workers who operate through their own limited companies (or PSCs) pay broadly the same amount of income tax and National Insurance contributions as employees.
Why does IR35 matter?
If you`re a contractor working in the finance industry, being caught by IR35 can have a significant impact on your earnings. Essentially, it means that you`ll be taxed like an employee, which can lead to a reduction in take-home pay. In addition, if you`re deemed to be inside IR35, your client is responsible for paying employer`s National Insurance contributions, which can make you a less attractive proposition to potential clients.
Tips for finding finance contract jobs outside of IR35
1. Choose your clients wisely
One of the most effective ways to ensure that you`re working outside of IR35 is to choose your clients wisely. Look for organisations that are willing to work with contractors outside of IR35, and avoid those that have a blanket policy of only hiring contractors who are inside IR35.
2. Consider working for SMEs
Small and medium-sized enterprises (SMEs) are often more flexible when it comes to hiring contractors. They`re often willing to work with contractors outside of IR35, and are less likely to have rigid policies that restrict their ability to hire contractors.
3. Use an agency that specialises in finance
Working with an agency that specialises in finance can be a great way to find contract jobs that are outside of IR35. These agencies often have strong relationships with finance organisations, and can help you find roles that are exempt from IR35.
4. Consider contract-to-permanent roles
Another way to ensure that you`re working outside of IR35 is to consider contract-to-permanent roles. These roles typically offer a contract position with the possibility of becoming a permanent employee after a set period. If you`re hired as a permanent employee, you`ll be outside of IR35, which can be a great way to secure a long-term role.
5. Consult with a tax expert
Finally, if you`re unsure about whether a contract job is inside or outside of IR35, it`s a good idea to consult with a tax expert. They can help you understand the regulations and ensure that you`re working in compliance with IR35.
In conclusion, finding a finance contract job outside of IR35 requires careful planning, research, and a willingness to be flexible. By choosing your clients wisely, working with specialist agencies, and being open to contract-to-permanent roles, you can increase your chances of finding a job that is exempt from IR35. Remember, if you`re unsure about your IR35 status, it`s always worth consulting with a tax expert for guidance.