Changes for freelancers 2

IR35 is aimed at larger companies. It's a large company's responsibility to:

The client will need if you are IR35 compliant.

They'll use HMRC's CEST tool to check. If they think you are IR35 liable, your invoice payment will need to be taxed at source. That means they'll take employee tax and National Insurance as if you're an employee (but without the other protections and rights of being staff)  If you've been taxed at source you aren't liable to pay tax again. But over a year that could be a lot of extra tax you pay. If you disagree with a client's IR35 decision, you can appeal. As the law stands, if they don't flag a freelancer as falling under IR35, and they are, the client would be at risk of being billed for your payment of tax and NI.

Btw, worth mentioning, what's the definition of a large company Vs a medium or small? The company needs at least two of the following: 50+ staff, turnover of £10.2m, balance sheet £5.1m.

It's a lot to digest if you've always built your business on freelance work in the UK. Clients are inevitably going to get more twitchy about how they respond to this change in law, and will do everything in their power to avoid being liable for your tax bill!

I found this change in law was another nail in the coffin for having freelance as the backbone of my income. Even though it has come at a high cost and been a painful transition I would say it's opened the door for me to develop my business in a totally different way, developing products. Which has been really exciting and energising. I'm curious to hear your thoughts on this, has it changed how you work? Enabled new things to happen in your freelance life?