Freelance worries

I have noticed that I have become more stressed since becoming a freelancer. Better off, yes, able to pay bills, yes, able to start eroding my massive debts, yes. More relaxed, well no.

I suppose I could say yes, since if i wasn't better off I would probably be having my house reposessed by the bank and my children taken into care by the council.

But its not a free ride.

There are three main tax rules that wake me up sweating in the night.

• IR35 - this checks that you are a genuine freelancer and not a disguised employee. I think I am OK but I am borderline.
• The Managed Service Contractor regulations - if the tax man thinks that my accountant is having an influence over my company he can overlook the fact that I am a limited company and tax me as if I was an employee.
• The 'Arctic Systems' case going through the House of Lords at present - Arctic systems is a hsuband and wife that jointly set up a company and share its profits, though only the husband's work brings money into the company. The tax man and the lowest court think he is just giving away his income and should be paying the higher tax rate, the court of appeal say they were legitimately sharing the proceeds of thir joint company. The House of Lords has the final say and is due to report in August.

I woke up from a nightmare recently in which dinosaurs with big teeth were trying to eat me, and as soon as i woke I knew that they represented the tax office.

Render unto Caeser the things that are Caeser's. Yes, but not more than he is legally entitled to. for the first two, my case is borderline - i think I am OK but its not clear cut. For the latter, the House of Lords' decision will impact directly.

My Bulgarian Orthodox colleague is impressed that British people generally pay their taxes, in contrast to his countrymen [he tells me], and thinks it is a joy to pay for the priviledges of our nation. My parents simlarly don't claim benefits they are entitled to.

I would be happier to enter into this joyfully after I have cleared my credit cards.

I am clearly the black sheep. Wealth breeds greed. I resent paying one penny more tax than the absolute minimum that a good tax consultant can prove is required by law.

But am I really wealthy? I still owe £XX,000 to the credit cards and have a £XXX,000 mortgage. God also instructs us to pay our debts and to bring up our children. So charity to the govornment will have to wait.

Plus, the fact that I am running a company as well as doing my normal work, ie doing extra hours, and getting stressed by it all, should mean that I earn more than if I was just an employee.

Ultimately I believe God has brought me to this place, and will try to rest in Him, whatever the tax man decides.