Feeds

Freelancers set for IR35 tax rebate

Verily, he that giveth shall receive

  • alert
  • submit to reddit

Top three mobile application threats

Thousands of entrepreneurs could have the chance to reclaim money taken from them under the controversial IR35 tax, a consultancy firm has claimed.

Qdos Consulting said that small businesses and freelancers who paid the "stealth tax’ soon after it was introduced in 1999 could be in line for a rebate because they handed over too much.

The government introduced IR35 to clampdown on tax avoidance by freelancers by charging them the same rate of National Insurance as normal employees.

However, small firms have bitterly opposed the tax, claiming that it does little to prevent avoidance and has threatened the viability of many enterprises.

Qdos said that in the early days of IR35, many freelancers decided to "tick the box and pay up". As a result, the consultancy said that many taxpayers paid out too much because they feared the Inland Revenue would class them as "disguised employees" rather than a legitimate small business.

Since the introduction of IR35, several small firms have won disputes with the Inland Revenue over the tax, raising hopes that thousands of businesses could be due a rebate.

Alongside freelance network Shout 99, Qdos has launched a new service, Out of the Box, which shows freelancers whether they have paid too much under IR35.

Steve Grenwell, of Qdos, said: "The level of uncertainty surrounding the introduction of IR35 was so great that many small businesses ‘ticked the box’ on the Revenue forms and paid up - rather than face the prospect of what seemed a lengthy and uncertain battle with the Revenue.

"As the situation has clarified, many people might regret those decisions which could have resulted in hundreds of thousands of pounds being handed over to the Revenue when it was not necessary.

"This new service gives those businesses a second chance to have their situation reviewed with a greater level of certainty."

Susie Hughes, managing director of Shout 99, said that she knew that many freelancers paid the IR35 tax when they were unsure of the situation: "This gives them an opportunity to look again at whether or not they should have, with the wisdom and experience of hindsight."

To find out more about the Out of the Box service, call Qdos on 01455 852030.

Copyright © 2004, Startups.co.uk logo

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.