Contractor News: May
The month of May saw further lockdown restrictions ease, with the rules changing to finally allow people to hug their loved ones again. We can also now meet inside (with restrictions), which couldn’t come soon enough, with this month set to be the wettest May on record.
Contractors saw IR35 become part of day-to-day life, and the headlines were full of the news that another celebrity had become embroiled in IR35, this time it was the turn of BBC presenter Gary Lineker. From IR35 to lockdown, we’ve put together an overview of all the news this month that could affect contractors.
Gary Lineker targeted over IR35 tax bill
At the start of the month, we reported that former footballer and current television presenter, Gary Lineker, was being targeted by HMRC over a £4.9 million tax bill. The news spread like wildfire, with many media outlets reporting on the story. For the work that HMRC is claiming against, Lineker was working through his limited company Gary Lineker Media (GLM), owned jointly by Lineker and Danielle Bux, his wife at the time of the work. Although there has been little released on why HMRC believe Lineker was working inside IR35, we do know that it was for the period from 2013-2017, where he worked as a footballer presenter for the BBC, as well as the year 2017-2018, where he was working for BT Sport. Both services were provided by Gary Lineker Media. We will provide more information on this case as we get it.
It is thought likely that Lineker’s IR35 case could drag on, perhaps even for years, but how much will an IR35 tribunal cost? This is not an easy question to answer, as it is dependent on many factors, including who is liable, how much a solicitor charges, and whether the contractor in question had IR35 protect insurance in place.
Further lockdown measures eased
The 17th of May saw the next round of lockdown measures ease, including two households or groups of six being able to meet indoors, pubs and restaurants opening indoors, and the reopening of cinemas and theatres. With these added changes, it is now starting to feel that the end of lockdown is in sight. For contractors, this may mean changes for you as you could be required to work back on site. To make sure you’ve got everything sorted, we’ve pulled together this blog for things to consider.
Although you may be preparing to get back to work, it was also reported this month that due to the number of businesses that were able to cope with remote working throughout the pandemic, more and more of us will be working from home in some capacity. For this reason, if you haven’t already done so, you should think about getting your home office organised.
As well as getting ready to return to work and getting your home office tidy, one thing we think that all contractors deserve is a break. Whether you’ve been working flat out throughout the pandemic, or unfortunately had little or work and been stuck in your same 4 walls at home for the last 12 months, a change of scenery can give you a bit of a well-deserved rest. Head to our blog on the best UK breaks to have a rest for contracting, with ideas to suit all budgets.
IR35 contractor questions
It’s now been almost two months since the IR35 reforms came in – doesn’t time fly! But that hasn’t stopped our contractor IR35 questions coming in for our Head of Tax, Andy Vessey. This month, Andy fielded questions around pension contributions relating to IR35, claiming expenses and terms of engagement. Don’t forget you still submit your questions via our Ask Andy form. And if you still need to check the status of an IR35 engagement, you can do so with our award-winning IR35 status tool.
Professional indemnity insurance from Kingsbridge
Hopefully, with the lockdown measures easing, you are now picking up more work. If you have cancelled your contractor insurance over lockdown, we can help you get set back up. Kingsbridge’s insurance package includes everything you need to get back to work, providing you cover for professional indemnity, public liability, occupational personal accident cover, employers’ liability and directors’ and officers’ liability. Get a quote online or give our team a call our friendly team on 01242 808 740. With a customer satisfaction score of 4.8/5 from more than 10,000 customer testimonials, you can trust that our team are here to help.