How to transition from being a day rate contractor to a consultant who provides services | by Bekka Prideaux
Choosing to thrive outside IR35
Are the changes to the IR35 legislation going to hit you hard in the pocket and reduce your earnings?
Let’s face it no one wants to be significantly worse off because of a change in the way they’re taxed, but, if you can only take contracts inside IR35, that’s the situation you’re up against. You’re going to be taking home up to 25% less of what you earn, and your bills are only going up.
For your clients, the cost of employing off-payroll employees is going up significantly and they’re going to need to work differently too. Maybe they’ll ban contracts like yours and only take on fixed-term employees or maybe they are asking for a rate cut when you renew, whatever their response, it’s less than ideal for you.
What are your options?
You’ve talked to your accountant and while they can offer you tax advice they can’t offer you a solution to the fundamental problem. So you could just chase the contracts that are outside IR35, but that is what everyone else is going to be doing too.
It may feel out of your control, and what you need now is a way to protect your income, protect your work flexibility, and to keep doing the work you love and are good at.
Here’s the good news
You have a choice in how you handle IR35 and there’s a proven solution that allows you to:
- Keep serving your clients
- Keep using your expertise
- Keeping the flexibility in the way you work
- Maintaining control of your income level
- Support your clients in controlling their costs