New proposal from IPSE - Smoke and mirrors?

[tractor]

...

And you wonder why I've given up trying to say anything...

I don't wonder. I am just glad that you (almost) have.

[GlenW]

However, the IPSE powers that be position is that their predictions are going to be accurate (it won't be mandatory, it won't increase your tax burden, it will be simple to operate, there will be no IR35 worries, there will be no expensive accounts to do etc.) whereas anyone who believes anything differently is wildly speculating about things that will never some to pass.

The IPSE powers-that-be are more interested in the New Year's Honours list for 2016/17 than they are in their members.

[TheFaQQer]

I doubt it either. But not everything is about tax. It could benefit UKGov if all that happened was they could stop spending money on IR35, and knew more accurately how many freelancer/contractors there WERE, even if the tax take stayed the same.

The figure is between 1.25 and 1.5 million - based on research of SOC1-3 self-employed persons.

Many people would gladly pay a little more tax to escape the uncertainty of IR35 - and the need to pay for expensive IR35 reviews and insurance. I bet a lot of people would even be 'happy' as long as the amount of tax they paid didn't exceed what they would pay in PAYE as a permie earning the same amount, even!

If the additional tax take is under £360 a year (the price of my Qdos TLC35 annual premium), then it's hardly worthwhile to introduce a new corporate vehicle. If you want certainty, declare yourself inside IR35; if you want near certainty then understand IR35 and take out an insurance policy.

[Unix]

I would be willing to pay a few percent more in tax for a simplified tax system for one man bands and without the risks of IR35. Rates would rise if HMRC tightened the screws to make it more like permie.

There is a gap for us contractors who are clearly not full businesses but also not employees, if they make it fair and simple then I am all for it.

[tractor]

...

I would be willing to pay a few percent more in tax for a simplified tax system for one man bands and without the risks of IR35. Rates would rise if HMRC tightened the screws to make it more like permie.

There is a gap for us contractors who are clearly not full businesses but also not employees, if they make it fair and simple then I am all for it.

But that is not what you will get. Who do you think will set the level of a fair salary/dividend split. What are you going to do when your spouse who may also be a fee earner is not allowed to be part of your business?

[Unix]

But that is not what you will get. Who do you think will set the level of a fair salary/dividend split. What are you going to do when your spouse who may also be a fee earner is not allowed to be part of your business?

I would then create a full Ltd, this is designed for one man bands AFAIK

[TheFaQQer]

I would then create a full Ltd, this is designed for one man bands AFAIK

And when the agencies won't deal with a limited company, what will you do then?

[Unix]

And when the agencies won't deal with a limited company, what will you do then?

Start using offshore accounts.

[TheFaQQer]

Start using offshore accounts.

Via an FLC, umbrella or PAYE?

[tractor]

...

Start using offshore accounts Give it all up as too difficult/risky and go perm which is what HMRC wanted all along .

FTFY