Our initial review of yesterdays Budget, including the news that reverse IR35 will come into the Private Sector from 2020, is now up on the website of our parent company, Whitefield Tax:
With respect to IR35, IR35 does not, never has, and cannot, apply to a Sole Trader, however in 2017 when the Public Sector IR35 rules changed a number of Engagers misunderstood the rules and came out with bizarre statements, eg schools suggesting that they could only engage Yoga Teachers if they were a limited company – that was wrong then and still is now, although it still comes up occasionally.
Looking forward we can expect more misunderstandings and anomalies in 2020, and doubtless with Engagers thinking they need to do something about Sole Trader Yoga Teachers (they don’t), and Sole Trader Yoga Teachers panicking needlessly about IR35 especially when media reports are often poorly written and conflate the rules for Sole Traders and Companies.
In most instances a Yoga Teacher working through a company will not be impacted either, as the Employment Status tests are unlikely to be triggered.
