Changes for freelancers 1/2

If you've freelanced as a designer you'll already be familiar with IR35: a law brought in, in the 90s dealing with the sudden surge of IT contractors. The original law aimed to cull back handers in companies. A contractor needed to ensure their earnings wouldn't come from a single client. If they did, this could open the door for dodgy dealings between staff and directors. With tax avoidance from bosses and for staff much less tax paid on earnings that could be classed as salaries. 

This understanding, and responsibility has rested with freelancers for a few decades. Now, in April 2020 the law has changed. It's now the responsibility of the employer to be IR35 compliant. And with that comes the effort, checking, red tape and tax responsibilities. Is it going to change the nature of freelance hires? Most probably yes. HSBC have publicly stated they'll be avoiding using a freelance workforce. This comes at a bizarre time with Brexit and an odd decision under a conservative government. This'll undoubtedly reduce freelance earnings and the impact it has on our UK economy. 

Is this all bad for freelancers? Not entirely, no… but I'd proceed with caution. A few months back I went all out to win new clients in London. I got a very slow (read tiny) response back. The freelance climate has certainly changed, it's become a lot more cautious.