What is IR35?
IR35 is a set of tax laws which have been in force since April 2000. It aims to prevent the self-employed contractor operating as a ‘disguised’ employee to avoid high tax rates on their earnings. Those who fall inside of IR35 are subject to PAYE, those who do not are known as ‘off-payroll’ workers and enjoy more flexibility.
How does it affect Barkers?
At Barkers, we believe that IR35 should pave the way for a change in the contract market, away from day rate agency workers and large consultancies and towards networks of smaller specialists, who collaborate to best exploit the gig economy.
“IR35 is a great opportunity for Barkers. We’ve done a material amount of due diligence on both our client contracts and our associate contracts, and we’re happy to say that we operate outside of IR35, and we hope that will open up a world of opportunities for us.”
Warren Ward, Director
How does it affect our clients?
We are delighted to confirm that Barkers Commercial Consultancy sits outside IR35 and therefore our clients are unaffected by the changes introduced in April 2020.
The following factors explain why:
- Barkers Associates never fill a vacant permanent role within an organisation; our assignments are fluid and diverse to reflect the complexity of the client’s challenge
- Our Associates may work with multiple clients at any one time, and our contracts allow for supply of substitute resource providing continuity of service whatever the circumstances
- Our contracts explicitly state the remit of our Associates and are terminated at the end of each assignment
- Barkers contracts outline the key milestones required by the client, and we typically invoice based on completion of these
- Our Associates never appear on an organisational chart; they are contractually distant from the organisation’s core structure and do not receive employee benefits such as holiday pay, sick pay or pension payments
- All Barkers’ Associates use their own equipment and software in a client setting making them fully self-reliant and self-directing in the delivery of our assignments.