The Intermediaries Legislation (IR35) is a tax law. It is quite complicated, as is the case with all tax evidences, but it is closely related to employees in the UK.
It is perhaps the most likely one to be overlooked in the taxes, which are a very important issue for the Ankara Agreement.
Find out what IR35 is and how it can be used.
If you came to the UK with Ankara agreement, you have the chance to establish two types of companies according to the work you do. These are sole trader or limited company. Due to the Ankara Agreement, your company has a number of advantages. These are;
A – You pay less tax.
B – You do not pay the National Insurance Contribution.
The companies that you want to cooperate with will benefit from these rights. Since you can work in England under these conditions, you can accept it without knowing what will happen to you and then you will face results that are impossible to repair.
It is the dream of all small, large corporations to pay less taxes and not to pay insurance contributions. British companies employ (but they do not) employees like you as normal work force. Because they do not contract such personnel. For this reason, they do not pay the insurance contribution and other payments that the employer has to pay.
This company may have hundreds of workers in this position, which is linked to it, such as payroll, tax and accounting. They can assign them to the desired location.
This large company can make you involve in full-time staff. At this point you are now a secret worker (disguised employement). As you know, the UK Tax Agency (HMRC), which has fought very hard with tax evasions, has brought IR35 to eliminate such situations. If you are involved, you will now pay as much as a regular employee.
This is 25% of the tax you will pay is not to be underestimated. The employer pays the insurance contribution.
Due to the characteristics of the Ankara Agreement, contracted employees should never be involved in IR35. Those who come with the Ankara Agreement are not covered by IR35. But if you get a job, project proposal, and the company that offers you this is asking you to work under IR35, you should not accept it.
When you agree, you can’t do any more work and bill than this because it will fill all your time. In such a case, the visa extension will be negatively affected, and you cannot avoid the tax you will pay in high numbers. Even if you accept all of these things, you can get a penalty if the company that you work for gets a penalty for these reasons.
If you are a person in England because of an Ankara Agreement, this will be the last thing you will want.