Freelancers at MediaCity are being warned about ensuring their work is fully compliant with tax legislation.
As a result of the way in which freelancers operate, it is expected that circumstances will differ for each freelancer working at MediaCity for example, those working at Media City via their own Limited Company need to ensure they fully comply with IR35 legislation.
A contractor’s IR35 status effectively determines their tax position with HMRC. Contractors working through a limited company who fall outside IR35 are entitled to receive payments in the form of dividends. Those captured by IR35 are regarded as ‘disguised employees’ and their income should be taxed on a PAYE basis.
Martin Hesketh, managing director of Brookson Accountancy and Support Services, said: “My opinion is that Media City is just one example of a project that simply couldn’t succeed without freelancers. Their skills allow decisions to be made without the overheads of fixed PAYE employees and they bring specialist attributes which can be transferred to suit a project’s needs.
“Brookson’s advice to freelancers is to seek professional advice on your contract and working practices to ensure you comply with tax legislation. It really can help save you a headache in the long term.”