Crackdown on personal service companies could raise £400m in tax

[zemoxyl]

Maybe that's Osbornes's big plan. UK IT market fully controlled by big consultancies.

I might have agreed with you, were it 1997 and the incoming government had just proposed IR35. However in 2015......

The fiscal deficit is running away from him that's why he's trying to cobble together an increased revenue stream. He's already failed his stated target of deficit clearance by the 2015 election.

http://www.theguardian.com/business/...george-osborne

[jpdw]

So compared to last weeks Grauniad "leak", today's round of "leaks" includes suggestions that having multiple clients might make a difference. But how would that work? I mean, multiple clients being worked by an individual or multiple clients being worked by the company? In MyCo case, we currently have 2 clients with me dealing with one and an employee (mrs jpdw) dealing with the other.

And how would more than a month be defined in a way that prevents someone doing a years work on 12 1-month contracts whilst not clobbering someone that does 15 days in January, then (because they were really rather good), get called in February and asked to do another piece of work, that lasts a few days or maybe a couple of weeks. Or is the Government going to try to prevent a business from getting repeat business from a happy client? The more artificial the tax rules become the more they create unintended consequences and loopholes.

And again, even the articles on websites where the journos should know better, this mythical "psc" is still mentioned all over the place. Good job none of us have one of them then!!! Although not mentioned in any of today's "leaks" understanding what constitutes being something other than a psc could be key.

I can't help but think these status test questions will end up defining a lot of contracts. The idea of having to move sizable percentages of contributors/workers onto payroll / suffer a suggested employers NI charge might mean ClientCos end up matching their actual behaviour/expectations to the status test rules they want to "pay for". If there does end up being a definitive test then at least there would be "certainty" and surely -- so long as the questions are answered honestly -- there'd be little ability for HMRC to question the validity of their own status test at some later date....

On the other side of things, there's no denying that there are a lot of contractors who really behave like permies - they have no clue about running a business - VAT, tax, acounts, contracts etc - and no desire to learn either. And strive to move upwards from one role to another around ClientCo, clocking up more years' continuous 'service' than most permies. So its hardly surprise we're all a big target.

[AtW]

Would doing work on rent-a-coder type webtulipes at the same time be seen as multiple clients? I would contact some small charities a do some work pro bono and do some work for them at the same time (evenings and weekends where required).

Do it for Citizens Advice Bureau, this way you'll know how to find them and jump the queue...

[AtW]

Entrepreneurs

Tax professionals are speculating that Mr Osborne could squeeze a lucrative perk that currently allows entrepreneurs to pay less capital gains tax when they sell a business — a relief estimated to cost the exchequer about £3bn a year.
Official analysis showed that £1.8bn in entrepreneurs’ relief was enjoyed by roughly 3,000 individuals in 2013-2014. Richard Murphy, a taxation campaigner, told the FT this was tantamount to “giving wealth away”.

Well there you go

Fooking Tory Scum

"giving wealth away" LOL - they increased wealth to produce that CAPITAL GAINS TAX you fook!

[AtW]

Or we'll all increase our rates to compensate.
Just a thought.

Yeah, the companies will have so much free cash from the tax cuts delivered by the pro-business Govt that they would be increasing rates left right and center

[AtW]

George - zero corporation tax - Osborne:

200 mln in sales and no profit to pay tax on but they still run the business...

[AtW]

I might have agreed with you, were it 1997 and the incoming government had just proposed IR35. However in 2015...... The fiscal deficit is running away from him that's why he's trying to cobble together an increased revenue stream. He's already failed his stated target of deficit clearance by the 2015 election. Shock UK deficit figures dent George Osborne's economic plan | Business | The Guardian

He will raise a few billions PER YEAR. That's nothing compared with the deficit - £8.2 bln in OCTOBER alone.

He did not do any real cuts 5 years ago and he does not want to do them now either - it's all about increasing taxes but there is simply not much room available.

btw, NOW he might just crash the housing market nicely - people who had some decent income and took on lots of debt to buy a house will suddenly face big fall in income.

Taxation burden in UK is becoming higher than that in Germany which was supposed to be high taxed country - and German's debt isn't growing.

[Zero Liability]

So compared to last weeks Grauniad "leak", today's round of "leaks" includes suggestions that having multiple clients might make a difference. But how would that work? I mean, multiple clients being worked by an individual or multiple clients being worked by the company? In MyCo case, we currently have 2 clients with me dealing with one and an employee (mrs jpdw) dealing with the other.

There's also the possibility that all these 'leaks' relate to the Consultation document. We'll know more in a few days.

[BrilloPad]

I might have agreed with you, were it 1997 and the incoming government had just proposed IR35. However in 2015......

The fiscal deficit is running away from him that's why he's trying to cobble together an increased revenue stream. He's already failed his stated target of deficit clearance by the 2015 election.

Shock UK deficit figures dent George Osborne's economic plan | Business | The Guardian

This is not to do with money. It is to do with ideology.

[MrO666]

There's also the possibility that all these 'leaks' relate to the Consultation document. We'll know more in a few days.

I think we all know that any government / HMRC consultation is merely a proceedure.....you can be damn sure they already know exactly what they plan to do regardless of any consultation....it's just a tick in a box for them.