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Finance bill 2016

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    Finance bill 2016

    Finance bill for bedtime reading

    https://www.gov.uk/government/public...lanatory-notes

    #2
    Originally posted by mudskipper View Post
    Has this now been updated to include Ltd's for the SDC test?

    Saw it reported yesterday, and was surprised there was no uproar on here..

    Comment


      #3
      Originally posted by moggy View Post
      Has this now been updated to include Ltd's for the SDC test?

      Saw it reported yesterday, and was surprised there was no uproar on here..
      What SDC test? If you're referring to the recently announced reform w/r to the public sector, they haven't even released the consultation yet, so it's a long way off legislation in a Finance Act. Expect something in the Autumn Statement, following a summer consultation.

      Comment


        #4
        Originally posted by jamesbrown View Post
        What SDC test? If you're referring to the recently announced reform w/r to the public sector, they haven't even released the consultation yet, so it's a long way off legislation in a Finance Act. Expect something in the Autumn Statement, following a summer consultation.
        apologies, no was referring to a link/press release from the FCSA website detailing how Ltd's operating outside ir35 would also need to confirm their sdc status in order to claim T&S - granted the release was a little light on info - so wanted to see if i had misunderstood or if this had slipped under the radar?

        "The latest amendments will now prevent the organised misuse of personal service companies (PSCs) to avoid the restrictions; the original draft meant that PSCs would not be caught if they were outside of IR35, whereas other intermediaries would be caught unless they could prove the worker is not subject to supervision, direction or control (SDC). Therefore, it would be possible for PSCs outside of IR35 to receive the tax relief even if they were subject to SDC and it is this potential abuse that has been addressed."

        Comment


          #5
          Originally posted by jamesbrown View Post
          What SDC test? If you're referring to the recently announced reform w/r to the public sector, they haven't even released the consultation yet, so it's a long way off legislation in a Finance Act. Expect something in the Autumn Statement, following a summer consultation.
          And if it's referring to the brolly tests for SDC, then no - they have enough information apparently.
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          Comment


            #6
            Originally posted by moggy View Post
            apologies, no was referring to a link/press release from the FCSA website detailing how Ltd's operating outside ir35 would also need to confirm their sdc status in order to claim T&S - granted the release was a little light on info - so wanted to see if i had misunderstood or if this had slipped under the radar?

            "The latest amendments will now prevent the organised misuse of personal service companies (PSCs) to avoid the restrictions; the original draft meant that PSCs would not be caught if they were outside of IR35, whereas other intermediaries would be caught unless they could prove the worker is not subject to supervision, direction or control (SDC). Therefore, it would be possible for PSCs outside of IR35 to receive the tax relief even if they were subject to SDC and it is this potential abuse that has been addressed."
            Not sure what they're on about. Scanning the legislation, the carve out for IR35 is at the top of p19, i.e clause 14 (1) (4), where chapter 8 part 2 of the ITEPA 2003 is referring to IR35.

            http://www.publications.parliament.u...155/160155.pdf

            Comment


              #7
              See analysis here

              https://www.linkedin.com/pulse/trave...stuart-marquis

              Comment


                #8
                Originally posted by mudskipper View Post
                OK, I'm confused

                "The PSC is not caught by IR35, but were the PSC not present as an intermediary, the worker would be considered an employee of the client/end user"

                - which bit of the new legislation does this relate to - i.e. is that an accurate interpretation, and how is that test applied?

                What are section 51, 52 or 53?
                Last edited by mudskipper; 30 March 2016, 11:21.

                Comment


                  #9
                  Originally posted by mudskipper View Post

                  What are section 51, 52 or 53?
                  Income Tax (Earnings and Pensions) Act 2003

                  That doesn't seem relevant?

                  Think it's just saying MSCs are 'caught'.
                  Last edited by mudskipper; 30 March 2016, 11:32.

                  Comment


                    #10
                    Originally posted by mudskipper View Post
                    OK, I'm confused

                    "The PSC is not caught by IR35, but were the PSC not present as an intermediary, the worker would be considered an employee of the client/end user"

                    - which bit of the new legislation does this relate to - i.e. is that an accurate interpretation, and how is that test applied?

                    What are section 51, 52 or 53?
                    I scanned the analysis, and it seems confused in places, but it also isn't a 10-minute job to read through the legislation carefully and compare with the earlier clauses. However, as I say, I think (4) is the critical part for most of us, as this eliminates (3), which is the SDC test, when outside of IR35 (assuming not an MSC).

                    Sections 51-53 are part of IR35 (the conditions of liability), i.e: part 2, chapter 8 of the ITEPA

                    Income Tax (Earnings and Pensions) Act 2003

                    Edit: and (5).
                    Last edited by jamesbrown; 30 March 2016, 11:38.

                    Comment

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