Over the last decade, the freelance economy has grown to levels that make it a true force within the wider labour market. In conjunction with this growth, there is a real consistency in how national economies legislate for independent professionals.
Even with this growth, the UK government's broadening of its IR35 legalisation to include private sector is the biggest shift in the freelancer/contractor industry for some time. It effects both sides of the coin - how organisations approach the hiring of contingent labour, and, at its simplest, how freelancers are paid.
It may seem like it’s the clients who have to do all the preparing, to be able to carry out IR35 assessments and then deduct income tax and NICs for those contracts which are assessed as inside IR35. But, the impact of these changes will affect all contractors.
For example, for each contract that you do, you will need to go through whatever administrative processes the client has implemented to carry out the assessment – some clients may only assess the contract, but others may be more collaborative and involve you responding to questions too.
For contracts you do for small clients, you will remain responsible for carrying out the assessment in the same way as the rules work now.
What to think about now
When the similar changes were first rolled out in the public sector we saw users of contractors pay A LOT more attention to the requirements of IR35 and we fully expect this will happen in the private sector too. It means that the process of agreeing assignments with your clients will change - the client will need to do a full IR35 assessment as part of the brief process. Depending on the assessment outcome, how you are paid will change. To get yourself prepared for the upcoming changes here are a few things you can do:
Need to know more?
YunoJuno is very excited to announce that our new product IR35 Safe is launched! IR35 Safe is the culmination of 18 months of R&D to create a best-in-class platform to manage the ‘new normal’ under IR35. Check it out and get in front of it today!Get IR35 Safe
We've been doing some research and have discovered that more than two-thirds of freelancers in the UK are unaware of the impending changes to IR35. As the leading freelance platform for the creative and technology sector, we feel like it's part of our job to make sure you're up to date with all the latest news and changes that might affect you!
So, we will be running some events, bringing together some of the key experts to help you out. This will be an opportunity to discuss how you can prepare for IR35 and raise any questions you may have.