Freelancers - Get Acquainted With New Rules And Regulations

Contractors have been reminded to become acquainted with the recent introduction

of the new Agency Workers Rules (AWR), whilst also being advised that careful consideration of these rules could prove critical for many workers and businesses, with a solid understanding of them needed.

Speaking to ContractorCalculator, Professional Passport Chief Executive Crawford Temple urged all freelancers to acquaint themselves with the legislation, which has now come into effect. He suggested that planning ahead could help to mitigate the effects of the reform somewhat.

Contractors can help themselves by ensuring they have all the facts to hand when challenged over AWR by agencies and clients, he explained. All but a fraction of umbrella company contractors know they will be in the scope of AWR, and many service providers have developed AWR-compliant trading models.

As a result, its important that everyone is aware of the AWR, no matter what part is played. Mr Temple added that some clients who are unfamiliar with AWR may initially be hesitant to hire contractors for fear they would have to offer pay and conditions in line with those of permanent workers. However, this isnt so, as freelancers will be able to counteract this if they have thorough knowledge of the new laws anyway, with confusion often a result of a lack of understanding of the topic.

Earlier in the week, ContractorCalculator boss Dave Chaplin suggested freelance workers could find themselves coming under tighter scrutiny from HM Revenue and Customs, after it was revealed that just 219,180 was paid in IR35 levies in the 2010-11 financial year.

And, its not only the most recent AWR that freelancers need to get acquainted with, as Official data has revealed that only a handful of contractors are getting in contact with HM Revenue and Customs (HMRC), in search of advice on the much-maligned IR35 tax system, consequently failing to use the resources out there.

A Freedom of Information request from ContractorCalculator uncovered the relatively low number of calls to HMRCs specialist IR35 Customer Service Unit, with a figure of around 1,000 freelancers each year phoning the helpline. However, calls have only been logged since August 2008, so arent particularly representative. The low number of calls to HMRCs IR35 helpline suggests that contractors have realised that they are likely to get better IR35 advice from an employment law and tax expert trying to keep them outside the legislation, said ContractorCalculator chief executive Dave Chaplin.

Mr Chaplin warned that there appears to be little contractor confidence in the ability of the HMRC to provide clear and impartial advice, leading many to seek assistance from a third party as a result. ContractorCalculator also claims that only around half of all calls made to the advice line are specifically related to IR35, which was less than originally thought.

Last month, a group of Liberal Democrat MPs issued a report calling for a temporary suspension of IR35 ahead of a full review, hinting a Nick Clegg-led government would have taken this course of action.

by: Tim Bisley

POST COMMENT

Practical Uses Of Zero Point Energy Four Ways For New Moms To Ease The Stress Of That First Day Of Day Care Using Tesla Energy As A Micro Power System Is America Lagging From The Rest Of The World In Using Renewable Sources Of Energy? Colocation Services India - A New Wave In It Infrastructure Management Healthy Coffee New York A Smart Way To Boost Your Health 2012 Maserati Granturismo Convertible Sport: New Interior Features And Standard Equipment The Brand New Orange Monte Carlo Cellphone Has Been Launched Buying A New Dishwasher For Your Home The New Website - A Blog Offering And Getting Information Online Purchasing Real Estate In New South Wales Try Out Chat Sites To Meet New People China Must Use More Renewable Energy