There seems to be a trend in the marketplace of larger clients increasingly investigating the contract status and trading status of trainers and HR professionals that they are contracting. Whilst I realise this is in response to IR 35 rulings I was wondering what steps members are taking should they wish to remain sole traders. I understand Mr Brown recently reduced the tax advantages of small Ltd companies, it would appear to be more advantageous to be a sole trader, however there is increasing reluctance from larger clients to deal with sole traders.
What solutions (and problems) have freelance members found in the sole trader versus Ltd company decision?
Mark Starling
3 Responses
the bane of my life!
I was a sole trader for seven years before two clients (one public sector) insisted that they wouldn’t deal with sole traders. I went Ltd Co for three years before going back to a PAYE role.
Then I got made redundant and am back to sole trader status. Some organisations (strictly private sector) have found ways around the sole trader issue through carefully worded contracts…the public sector doesn’t seem to have the motivation for this (but perhaps that is just my perception).
My solution is to only work with clients who will work with me as a sole trader.
Within the IT contracting sector there is an outfit called Sandford (I think)that provides a vehicle for sole traders to operate under a Sandfords umbrella for an annual fee.
I hope that helps.
Contracts
It has more to do with EU worker rights than IR 35 I think. Contracts can deal with this situation but if a policy is made by a public authority it is likely they will adhere to it for a long time.
http://www.limeone.com
0870 240 4325
information needed
Some more extensive information about IR35 would be useful for us all as I feel I get information peicemeal with some of it being contradictory a clear picture would be good