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New proposal from IPSE - Smoke and mirrors?
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New proposal from IPSE - Smoke and mirrors?
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Lots of "thoughts" over in general
http://forums.contractoruk.com/gener...y-ask-any.html
http://forums.contractoruk.com/gener...-proposal.html -
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It's also a proposal from the LFIG. Hoping for more comments from Philip Ross soon.
Edit:
The article you've linked to seems to provide some details - I think this is a mish-mash of ipse and LFIG, but unclear which is which...
Features of the FLC would be:
Only one shareholder, that being the person who generates profits for the business.
Contractor would be required to join a freelancing register.
Agreement by the contractor to extract profits by way of a fixed fair salary-dividend split.
Automatic recognition as a genuine business and therefore exempt from IR35.
Employment status would still be an issue but less onerous, as tests such as substitution and multiple/concurrent clients would be dispensed with.
Simplified accounting.
Ability to register for benefits between contracts.
Entitlement to tax credits for sickness, maternity, paternity and other leave.Last edited by mudskipper; 26 November 2014, 08:29.Comment
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Yes smoke and mirrors. Note that you still have to demonstrate your contract is one of services. The fixed 'fair' salary/dividend part is very unhelpful. Who decides what this ratio is?
I don't trust any organisation who's existence and remuneration depends on the status quo to fight our corner with true conviction.
I feel IPSE are becoming like so-called 'IR35 experts' who are invited to government forums when they have a business interest in maintaining the status quo. Their representations and recommendations need to be moderated in some way.Comment
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Originally posted by mudskipper View PostLots of "thoughts" over in general
http://forums.contractoruk.com/gener...y-ask-any.html
http://forums.contractoruk.com/gener...-proposal.html
Don't suppose you can summarise the 50 odd pages of ranting? I got the impression people are not too keen?Comment
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Originally posted by LisaContractorUmbrella View Postoh
Don't suppose you can summarise the 50 odd pages of ranting? I got the impression people are not too keen?
There is then an issue of a FLC shaped hole in forthcoming HMRC changes which make me question where the idea originates from..merely at clientco for the entertainmentComment
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Originally posted by mudskipper View PostI guess you'd see it as a threat to your business model?Comment
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Originally posted by eek View PostYep its a crap idea that will remove IR35 from the agenda by creating a separate legal entity that could be taxed separately and could be restricted to a single shareholder. Put all together I cannot see any benefit or real purpose for the idea.
There is then an issue of a FLC shaped hole in forthcoming HMRC changes which make me question where the idea originates from..Comment
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Originally posted by CheeseSlice View PostYes smoke and mirrors. Note that you still have to demonstrate your contract is one of services. The fixed 'fair' salary/dividend part is very unhelpful. Who decides what this ratio is?
I don't trust any organisation who's existence and remuneration depends on the status quo to fight our corner with true conviction.
I feel IPSE are becoming like so-called 'IR35 experts' who are invited to government forums when they have a business interest in maintaining the status quo. Their representations and recommendations need to be moderated in some way.Comment
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