The IR35 tax reform has significantly impacted freelancers, particularly project managers, but there's a silver lining: many opportunities exist outside this legislation. This article explores project manager contract jobs outside IR35, focusing on understanding the changes, spotting outside-IR35 roles, and making the most of these opportunities.
Before diving in, let's briefly understand IR35. Introduced in 1999, IR35 aims to prevent tax avoidance by individuals who invoice their services to clients via a limited company but are effectively working as employees. Since April 2021, the responsibility for determining IR35 status has shifted to the end-user, reducing freelancers' freedom and job opportunities within the public sector.
Understanding IR35 and Its Impact on Project Manager Jobs
As a project manager, understanding IR35 implications is crucial. If you're deemed 'inside IR35', you could lose up to 25% in net income. Therefore, pursuing 'outside IR35' roles has become more attractive, necessitating a shift in how you approach your job search.
IR35 mostly affects the public sector, with companies seeking to limit liability and ensure compliance. However, the private sector is also retracting, driving project managers towards 'outside IR35' opportunities.
Identifying Outside-IR35 Roles
Spotting outside-IR35 roles requires a keen eye. Key indicators include:
- Job listings mentioning 'IR35 not applicable' or 'outside IR35'.
- Roles of a fixed duration, typically longer than 3-6 months.
- Positions that evoke a sense of autonomity, such as 'remote' or 'virtual' work.
It's essential to research the company as well. Organizations adapting to IR35 changes by fostering a contractor-friendly environment can be reliable sources of outside-IR35 jobs.
Upskilling for Outside-IR35 Success
In the shifting landscape, adaptability is key. Pursue upskilling opportunities to enhance your appeal to 'outside-IR35' clients. Relevant skills include digital transformation, agile methodologies, risk management, and advanced communication techniques.
Additionally, building a strong professional network can open doors to hidden job opportunities. Leverage LinkedIn, attend industry conferences, and engage with online communities of project managers.
Exploring Outside-IR35 Alternatives
Beyond conventional contracting, there are alternatives to consider:
Limited Company Outside IR35
In some cases, you may work via your limited company while being 'outside IR35'. To ensure this, you need to demonstrate genuine commercial risk and prove your services are not controlled or supervised by the client. Seek professional advice to navigate this option.
Umbrella Company
Umbrella companies offer simplicity and protection, but they come with reduced take-home pay due to tax and insurance costs. However, they provide a genuine 'outside IR35' employment model, with the umbrella company's employees 'not working under supervision, direction, or control'.
In conclusion, while IR35 presents challenges, there's no cause for alarm. By understanding the nuances, leveraging your skills and network, and exploring alternatives, you can secure promising 'outside IR35' project manager roles. Remember, every change brings opportunities. Embrace this shift, and you'll be well on your way to thriving in the new freelancing landscape.