For the self employed the tax situation can be a minefield...
How to avoid a tax investigation
The complications the self-employed are going to face around tax is if you operate a limited company and you’re running yourself as a business, the tax man is going to put you under pressure to prove that you’re a legitimate business and there is something called IR35 which is there for the HMRC and the tax people to look at your status.
Now if you get a proper contract and you’ve agreed your contract with your agency and your end client, nine times out of ten you’re going to be okay, but there is that one in ten chance where you’ll be a grey area and you could be open to some sort of tax investigation.
Unfortunately the government is looking at tightening all this area up because they think there’s been too much tax avoidance. The thing is you need to get good advice around this and there are lots of people out there that will give you contract reviews and things like that, that will save you from the tax man. But that is the major complication around tax and it’s something many of us are trying to reform.
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