WORKING IN THE UK - Page 2/4
Working In The UK - VISAS
Healthcare
It is important that as soon as you find somewhere to live, you register with your local doctor. You will need to find one in our local area, and to ring to see whether they are accepting new patients. This might mean contacting several local surgeries before finding a suitable one. It is free to visit a GP, although there is a prescription charge of £6.00 for medicines prescribed. In a medical emergency a hospital casualty department will treat you without charge and without having to wait - depending on the gravity of your injury or illness. NHS Direct is a telephone number for advice on visiting a doctor or hospital. The number is 0845 4647
Working in the UK Limited Companies
Since April 2000, the whole issue of setting up a limited company has become more complex. This is because of new legislation introduced by the government known mysteriously as 'IR35'.
There is a vast amount of information available (reams of it on the Inland Revenue website) about the dos and don'ts and definitions of employed and self-employed - which is what it all boils down to. You will have to get to grips with the terminology and the issues at hand when making a decision as to whether or not setting up a company is for you.
It's a serious decision. The consequences of making the wrong decision are no laughing matter.
What is IR35?
In its press releases last year, the Inland Revenue described IR35 as legislation intended to 'tackle tax and National Insurance Contributions avoidance such as service companies or partnerships'.
It went on to say, 'Intermediaries such as service companies can be set up to provide the services of a single worker to a client in circumstances where, if it were not for the service company, the worker would be an employee of the client.
'The use of service companies in this way allows the client to make payments to the company rather than the individual, without deducting PAYE or National Insurance Contributions. The worker can then take the money out of the service company in the form of dividends instead of salary. Dividends are not liable to NICs so the worker will pay less in NICs than a conventional employee or a self-employed person.'
Basically, one-person service companies used as a vehicle to pay less tax have been outlawed. This means that to enjoy the tax advantages of using a limited company you will need to prove you are genuinely self-employed.
The main changes brought about by the legislation were that the rules:
· Place responsibility for complying with the new rules on the service company or partnership rather than on the client
· Use the existing tests used to determine the boundary between employment and self-employment for identifying contracts affected by the new rules
The wording of your service contract is not the only factor determining IR35 status. The working reality is the primary test. This means it is not in your best interests to agree a contract which does not reflect the true working relationship.