This Content Was Last Updated on April 25, 2020 by Jessica Garbett
The recent Budget announced the extension of reverse IR35 compliance to Private Sector Contracts from April 2020
For the most part this won’t be of any interest to Yoga Teachers, unless they work as a Freelancer / Contractor in another role as well.
Our parent Whitefield Tax specialises in IR35, and there is extensive information on the Whitefield Web Site around IR35
IR35 does not, never has, and cannot, apply to a Sole Trade. 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 Limited Company will not be impacted either, as the Employment Status tests are unlikely to be triggered.
So in short, be aware of IR35, if only to know that in most instances it’s not of relevance in the Yoga Sector. We’re happy to talk further if you need help.