Request for Action

[tim123]

Becuase by incorporating - which is not the only option, since we could work as PAYE Temps employed by the agency should we so desire - and choosing to work as a freelance we are deliberately and willfully giving up employement rights and protections, paid leave including bank holidays, sick pay and SSP provisions plus assorted sundries like pensions contributions and training costs.

Sorry Mal, you're still going around the same circle.

You are not taking this risk because of the incorporation. You are taking the risk because you have decided to freelance, which, as you yourself say, you could do in way that didn't involve incorporation.

The question still remains. Given that *everybody* who has decided to freelance is taking the same risks, why should a tax break only be available to those that decide to incorporate?

But it seems that you're not going to answer it.

I know that you think that there should be tax breaks available to people who take the risk of becoming a freelancer, and I agree with you. But this doesn't explain why there should be a rule making some freelancers more equal than others.

And HMG does see that there is a need for change after 15 years. It's because as another poster pointed out (and I have said before), the number of professions (e.g nursing, teaching) which has seen people incorporating, (often for no other reason than to take advantage of this tax break) has/will sky rocket. The desire to protect future tax revenue is a valid reason, whether you like it or not.

tim

[malvolio]

Sorry Mal, you're still going around the same circle.

You are not taking this risk because of the incorporation. You are taking the risk because you have decided to freelance, which, as you yourself say, you could do in way that didn't involve incorporation.

The question still remains. Given that *everybody* who has decided to freelance is taking the same risks, why should a tax break only be available to those that decide to incorporate?

But it seems that you're not going to answer it.

I know that you think that there should be tax breaks available to people who take the risk of becoming a freelancer, and I agree with you. But this doesn't explain why there should be a rule making some freelancers more equal than others.

And HMG does see that there is a need for change after 15 years. It's because as another poster pointed out (and I have said before), the number of professions (e.g nursing, teaching) which has seen people incorporating, (often for no other reason than to take advantage of this tax break) has/will sky rocket. The desire to protect future tax revenue is a valid reason, whether you like it or not.

tim

And as I've said before, several times, the reason people incorporate is not to save tax but becuase the agencies that own the jobs don't deal with individuals, only companies, because of S134c and 95% of them will not want to take you on as an agency temp under PAYE when there is a pool of corporates out there who will same job for no hassle. That's simple commercial reality.

Lose S134c and Transfer Taxation liability and we would all work as sole traders. As long as we have to operate a LtdCo, there is no reason we shouldn't have the associated taxation status. MyCo, legally, is no different to Tesco.

[BoredBloke]

And as I've said before, several times, the reason people incorporate is not to save tax but becuase the agencies that own the jobs don't deal with individuals, only companies, because of S134c and 95% of them will not want to take you on as an agency temp under PAYE when there is a pool of corporates out there who will same job for no hassle. That's simple commercial reality.

Spot on - Try to get a contract over say £25 per hour as an agency PAYE and see how willing they are to take you on. Their costs increase and when pitched against a contractor running a ltd company, see who gets put forward. So the ltd route becomes the only one you can use in order to get work. It's not a tax issue - although it is more tax efficient, it's an issue relating to simply getting put forward for a role.