+44 (0) 20 3761 6361 theteam@karencolliercareers.co.uk

Freelance Garment Technologist – Tax War

According to the papers on Sunday, Eamonn Holmes is locked in a legal fight with tax chiefs as HM Revenue & Customs is challenging his freelance pay, which he receives through his own limited company and he may owe millions from the past seven years.  BBC celebs, whose salaries are paid in the same way, have already been targeted by HMRC, which says they are employees. However, Karen Collier Careers will not register a freelance garment technologist who refuses to agree that they are employees and working inside IR35. We have had difficulty explaining this to them, as they know they are much better off working outside IR35, so that they can pay a reduced tax rate and can claim expenses back through their limited companies. There are a lot of retail head offices who are still paying freelancers through the thier limited business, so they are getting away with it. They say they will be worse off, but I try to explain to them that they won’t be worse off, they have just been better off as they have not been paying the correct tax in the first place. Freelancers are still using the same doctors and hospitals as employees who are paying the correct tax and national insurance, so why should they not pay fully for these services when others are. Let us explain: 99% of the time a garment technologist will be working inside IR35, and therefore are deemed to have the same responsibilities or benefits as a permanent employee, their earnings for that assignment are also considered the same as a full time employee. As...