Contractor UK Bulletin Board - View Single Post

The Lone Gunman · 24th July 2008, 06:58

Once again we see the blinkered viewpoint of the revenue and the influence it has on NL. It would not be half as bad if NL were not fixated on us not being proper businesses.

Any employee whether working for a brolly or a permanent employer can be paid travel and lodging expenses when required to work away from their normal place of work. This remains the case for up to 2 years. That is quite clear cut.
In this case there is no loss of revenue to the tax man.

What is not quite so clear is where the normal place of work is for a contractor.
Do we ever establish a normal place of work? Is it our home office (which some never use) or is it the last place we worked?

What is dazzlingly obvious is that HMRC and NL do not or will not recognise the legitimacy of our business structures and seem willing to do whatever they can to take ever more money from us.
They do not seem to recognise the dynamic nature of the IT industry (and other industries) that require a mobile and flexible workforce. Many of our clients do not need long term or permanent workers but do need bursts of expert workers for some projects.
We fill that gap.
This business structure has allowed me to gain some control of my work and finances. This structure means that I do not get laid off every 2 years (or less) as I did as a permie which in turn means I can establish pension and health funds. I can mange the periods between contracts (though I have been lucky) in such a way that my company keeps paying me and my bank account remains healthy enough to get and support a mortgage and other outgoings.

This new proposal if implemented will have a knock affect somewhere which will make the tax system more complicated or will show just how much legislation is being produced to single us out.
We as a group have proven to be hardy individuals and most of us will pass on the rise in costs to our clients or find other businesses and industries to work in. This may make us too expensive and may lead to more outsourcing and so to a loss of revenue to HMRC as billions goes overseas (again).

Rant over.

24th July 2008, 06:58	#9
The Lone Gunman Godlike Join Date: Jul 2005 Location: Live in Morecambe bay. Currently working in Southern Germany. Posts: 5,604	Once again we see the blinkered viewpoint of the revenue and the influence it has on NL. It would not be half as bad if NL were not fixated on us not being proper businesses. Any employee whether working for a brolly or a permanent employer can be paid travel and lodging expenses when required to work away from their normal place of work. This remains the case for up to 2 years. That is quite clear cut. In this case there is no loss of revenue to the tax man. What is not quite so clear is where the normal place of work is for a contractor. Do we ever establish a normal place of work? Is it our home office (which some never use) or is it the last place we worked? What is dazzlingly obvious is that HMRC and NL do not or will not recognise the legitimacy of our business structures and seem willing to do whatever they can to take ever more money from us. They do not seem to recognise the dynamic nature of the IT industry (and other industries) that require a mobile and flexible workforce. Many of our clients do not need long term or permanent workers but do need bursts of expert workers for some projects. We fill that gap. This business structure has allowed me to gain some control of my work and finances. This structure means that I do not get laid off every 2 years (or less) as I did as a permie which in turn means I can establish pension and health funds. I can mange the periods between contracts (though I have been lucky) in such a way that my company keeps paying me and my bank account remains healthy enough to get and support a mortgage and other outgoings. This new proposal if implemented will have a knock affect somewhere which will make the tax system more complicated or will show just how much legislation is being produced to single us out. We as a group have proven to be hardy individuals and most of us will pass on the rise in costs to our clients or find other businesses and industries to work in. This may make us too expensive and may lead to more outsourcing and so to a loss of revenue to HMRC as billions goes overseas (again). Rant over. __________________ I am not qualified to give the above advice! The original point and click interface by Smith and Wesson.