And the first leg is removed

[eek]

4.11 Off-payroll working rules – Following consultation, the government will reform the offpayroll
working rules in the public sector from April 2017 by moving responsibility for operating
them, and paying the correct tax, to the body paying the worker’s company. The government
believes public sector bodies have a duty to ensure that those who work for them pay the right
amount of tax. This reform will help to tackle the high levels of non-compliance with the current
rules and means that those working in a similar way to employees in the public sector will pay
the same taxes as employees. In response to feedback during the consultation, the 5% tax-free
allowance will be removed for those working in the public sector, reflecting the fact that workers
no longer bear the administrative burden of deciding whether the rules apply. (43)

[Yorkie62]

It's worse than that they are going to introduce new measures to clamp down on disguised renumeration as a way of tax management.

And flat rate vat now at 16.5% which approximates to 20% of net. So effectively abolishing flat rate vat.

[BrilloPad]

In response to feedback during the consultation, the 5% tax-free
allowance will be removed for those working in the public sector, reflecting the fact that workers
no longer bear the administrative burden of deciding whether the rules apply. (43)

Wow!

[ladymuck]

Never mind all the other costs of running a business. I guess PS contractors also don't need to pay for PII, or their accountant, and will receive paid holidays?

[eek]

Never mind all the other costs of running a business. I guess PS contractors also don't need to pay for PII, or their accountant, and will receive paid holidays?

Nope you will be directed towards an umbrella company - the agency's aren't going to accept any risk here (as screw ups are now their responsibility)...

[BoredBloke]

Things should get interesting the closer we get to April.

[youngguy]

What about pension payments?

[eek]

What about pension payments?

I really don't think my request for all income from this contract to be paid into their final salary pension scheme is going to be acceptable.

[youngguy]

I really don't think my request for all income from this contract to be paid into their final salary pension scheme is going to be acceptable.

That was sterling idea.

So if there are no expenses how does a PSC (their term) provide for themselves in the later life.....or shall we all just expect the Gov to look after us?!

[youngguy]

Nope you will be directed towards an umbrella company - the agency's aren't going to accept any risk here (as screw ups are now their responsibility)...

I can't see any benefit to running a ltd anymore for the contractor either?