Contractor asks:
I’m a freelance journalist. A client I've been working for for many years is floating the idea of some sort of fixed contract, rather than per-word / per-hour rates. They're not in the UK. Would this fall under the IR35 rules?
Acumenica Answers:
IR35 rules are specific to the United Kingdom and pertain to the tax treatment of contractors providing services to clients through an intermediary, typically a personal services company. The rules determine whether a contractor should be considered an employee for tax purposes, and thus subject to employment taxes like PAYE (Pay As You Earn) and National Insurance contributions.
If your client is not in the UK, IR35 rules wouldn't directly apply to them. However, many countries have their own regulations and guidelines that determine the employment status of contractors and freelancers. These regulations are often designed to prevent employers from misclassifying workers as contractors to avoid labor laws and tax obligations.
Since you mentioned your client is not in the UK, it's important to understand the employment and tax regulations of the specific country they are located in. They might have their own rules regarding worker classification, contract types, and tax treatment. If they are considering moving from per-word/per-hour rates to a fixed contract, it's recommended to consult with legal and tax experts in their country to ensure compliance with local laws.
Remember that employment regulations can change over time, and my information might be outdated. Always verify with up-to-date local sources or legal professionals to get accurate and current advice for your situation.
