IR35 calculator news: Rolling contracts 'a bad idea for tax purposes'
Posted on 25 February 2010
Published by Paul Shrimpton
Contractors should be wary when signing rolling contracts if they wish to work outside of IR35, it has been claimed.
According to freelancer resource website Contract Eye, if continuous work is offered to an individual by a client, it is "a strong indicator of employment".
As such, the individual would be liable for a higher level of taxation under intermediaries' legislation.
"Contractors should remember that it is the overall picture of your contract and working practices which will determine whether or not you will be caught by IR35," Contract Eye added.
Earlier this month, Stuart Davis, chairman of the Service Providers Association, claimed that an official definition of a contractor is needed.
He said this could help differentiate true freelancers from other professionals for employee expenses and IR35 purposes, enabling effective reform of the current tax regime.
Categories: IR35
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