IR35 - why we need to hike our rates
Hello freelancers and contractors!
If you work through an Ltd, you know the new tax legislation IR35 is going to cost us dearly. The only way we can limit the financial damage is if we hike our rates by a minumum of 20% (exact amount depends on your circumstances).
Companies and recruiters alike will try to keep your rates equal, meaning small independents like us suffer the cost, and we shouldn't. Up your rates, be strong. If big companies feel the hit, they will pressure government to change the legislation.
Maybe we should unionise? : ) Lmk what you think.
x
PS. You should probably increase your rates anyway. Most freelancers don't charge enough - especially women. x
Replies12
- @Isabel Serval thanks. I’ve recently returned to freelance and am seeing how the land lies...
- @Kerrie Alexander Ltd - it's a must for the clients I contract for.
- I’m a sole trader. Are you practising as a sole trader or limited company?
- One year and a pandemic later:I'm contracting outside IR35, thankfully and it will stay that way. It seems many companies are finding ways to work around it.What are your experiences?
- 100% let's start a union if ipse doesn't cover it!
- There is a union of sorts - no idea why I've never heard of them! https://www.ipse.co.uk/
- Agreed, a union would be good and raising prices makes sense.
- A union seems pretty reasonable given the legislation forces freelancers into no-rights employment ...As does a 20% rate hike. It’s what happened in the public sector, although the government and HMRC seems strangely unwilling to concede that it did
- I’ve always been pro-union
- @Mirella Aponte Let's!Maybe The Dots could become the first creative freelancer union?? @Pip Jamieson @Daniel Harvey
- Yes Isabel!Adding a 20% fee if the job falls under IR35 is perfectly acceptable (says the independent freelancer..)Unionising doesn't sound like a bad idea to me at all. Not sure how to go about that but it would be good to have some sort of protection/guidance. Maybe we could look into this?
- 100%.Or should I say, 120%!
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