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What Ir35 Means for Turkish It Contractors (Ecaa)

If you`re a Turkish IT contractor working in the UK, you may have heard about the upcoming changes to IR35 legislation. IR35 is a tax law that determines whether contractors are considered employees or self-employed for tax purposes. If you fall under IR35, you may be subject to higher taxes and other penalties. In this article, we`ll dive into what IR35 means for Turkish IT contractors working through the European Communities Association Agreement (ECAA).

Firstly, it`s important to understand that IR35 changes will only affect contractors who work with public sector organizations such as the NHS, local councils and government agencies. Private sector contractors are not impacted by the IR35 changes at this time. So, if you`re working for a private company, you don`t need to worry about IR35.

However, if you`re a Turkish IT contractor working through ECAA and you`re dealing with public sector organizations, it`s essential to understand the impact of IR35. Previously, the responsibility for determining whether a contractor fell under IR35 legislation was placed on the contractor themselves. But as of April 2021, this responsibility will shift to the end client.

This means that the public sector organization you work for will need to determine whether you are an employee or a self-employed contractor. If they determine you fall under IR35, then you will be taxed as an employee, and the organization will need to deduct tax and national insurance contributions from your pay.

If you`re unsure whether you`re affected by IR35, it`s worth speaking to the public sector organization you work for and discussing your employment status. They will be responsible for making the determination and providing you with their decision in the form of a “status determination statement” (SDS).

It`s essential to note that if the SDS provided by your client is incorrect, or they fail to provide one, then the liability for any unpaid tax and National Insurance contributions will fall on the client or the agency that has hired you. This is an important protection for contractors.

In conclusion, while IR35 legislation changes have the potential to impact Turkish IT contractors working in the UK, it`s important to remember that they only affect those working with public sector organizations. If you`re unsure whether you`re affected, have a conversation with your client or agency, and make sure you understand your rights and responsibilities.

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