New proposal from IPSE - Smoke and mirrors?

[LisaContractorUmbrella]

Yes they want everyone to be an employee.

So if you work in a company with your spouse/sibling/parent/whoever who is also actually fee earning, sell a product alongside your contracting or employ others alongside your contracting then you are screwed under this model. This model stops people trying to expand their business.

I wonder if they are going to change the signing on for jsa criteria? As with every break someone has under this they could sign on.

They might as well just be an employee through an umbrella company then

[TheFaQQer]

They might as well just be an employee through an umbrella company then

If they have the confidence that the umbrella is operating correctly and isn't going to suddenly disappear with their money, then maybe...

[Sysman]

I distrust any proposal with the word 'fair' in it - Tony Blair just ruined that word for me

Prawn Dimarolo

But yes. I have come to recognise the word "fair" as anything but when uttered from a politician's lips.

[mudskipper]

They might as well just be an employee through an umbrella company then

I assumed (pure speculation, and I could be way off the mark) that the taxation would be similar to being self-employed, so more than a ltd co, but less than a brolly.

However, if that's the case, and brolly users change to use the optional new vehicle, and ltd co contractors don't, that'll leave a shortfall...

[Zero Liability]

Autumn Statement 2014

Seems this lady doesn't want to see IR35 go - why doesn't she offer a detailed cost-benefit analysis, then, corroborating the figures HMRC failed to demonstrate? While she's at it, she can also explain how archaic definitions of employment comport with modern markets, and also disclose what her interest in the matter is.

Maybe though it's a desperate attempt to try say IR35 is working fine, to stave off FLCs. It's a poorly justified measure that has gone far beyond its original scope, FLCs or not. Both are bad ideas, whatever short term gains the FLCs could deliver to the government.

[malvolio]

Autumn Statement 2014

Seems this lady doesn't want to see IR35 go - why doesn't she offer a detailed cost-benefit analysis, then, corroborating the figures HMRC failed to demonstrate? While she's at it, she can also explain how archaic definitions of employment comport with modern markets, and also disclose what her interest in the matter is.

Maybe though it's a desperate attempt to try say IR35 is working fine, to stave off FLCs. It's a poorly justified measure that has gone far beyond its original scope, FLCs or not. Both are bad ideas, whatever short term gains the FLCs could deliver to the government.

As with all such critiques and analyses, not just the FLC argument, first look at the author and how they earn their crust...

[Zero Liability]

Hence the bit about disclosing her interest in the matter. To be fair though, I'm sure IR35 will be painted in a more positive light if the alternative is FLCs and the worst case scenario materialises whereby contractors are forced into these.

[LisaContractorUmbrella]

I assumed (pure speculation, and I could be way off the mark) that the taxation would be similar to being self-employed, so more than a ltd co, but less than a brolly.

However, if that's the case, and brolly users change to use the optional new vehicle, and ltd co contractors don't, that'll leave a shortfall...

From what I can make out Class 1 NIC's would still apply to the salary % (whatever that may be) so you would have smaller take home but still the responsibilities of a Ltd Co

[Alan @ BroomeAffinity]

From what I can make out Class 1 NIC's would still apply to the salary % (whatever that may be) so you would have smaller take home but still the responsibilities of a Ltd Co

But depending on what the salary/divi split is its still likely better than PAYE. And will there be a requirement to take all the profit? There could still be options for smoothing income over an extended period when the company isn't active.

[tractor]

...

But depending on what the salary/divi split is its still likely better than PAYE. And will there be a requirement to take all the profit? There could still be options for smoothing income over an extended period when the company isn't active.

Are you suggesting we should be grateful? I wish people would stop asking for it on my behalf!