Blog: Risk & Compliance

Sole Trader and Limited Company At The Same Time

19 May: UK Business Legal Structure: Sole Trader and Limited Company

In 2017, BBC presenter Christa Ackroyd made headlines when she lost an appeal with HMRC and had to fork out a huge £419,151 in uncollected Income Tax.
The reason? Christa was not an employee of the BBC, but a freelancer working through a limited liability company (LLC). Changes to the IR35 legislation, which governs how ‘off-payroll’ workers are taxed, meant that she was found to be a ‘deemed employee’ — and thus liable for taxes and National Insurance Contributions (NICs) at the same rate as an employee. Since she wasn’t aware of this, she was left with a bill for seven years’ worth of unpaid taxes. Read more to find out about IR35 and it’s effect on businesses across the UK.

IR35

19 May: What Is IR35?

In 2017, BBC presenter Christa Ackroyd made headlines when she lost an appeal with HMRC and had to fork out a huge £419,151 in uncollected Income Tax.
The reason? Christa was not an employee of the BBC, but a freelancer working through a limited liability company (LLC). Changes to the IR35 legislation, which governs how ‘off-payroll’ workers are taxed, meant that she was found to be a ‘deemed employee’ — and thus liable for taxes and National Insurance Contributions (NICs) at the same rate as an employee. Since she wasn’t aware of this, she was left with a bill for seven years’ worth of unpaid taxes. Read more to find out about IR35 and it’s effect on businesses across the UK.