New proposal from IPSE - Smoke and mirrors?

[LisaContractorUmbrella]

Goodbye to IR35 from FLC - Contractor Weekly

Would be interested in thoughts from the panel

[mudskipper]

Lots of "thoughts" over in general

http://forums.contractoruk.com/gener...y-ask-any.html

http://forums.contractoruk.com/gener...-proposal.html

[mudskipper]

I guess you'd see it as a threat to your business model?

[mudskipper]

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.

[CheeseSlice]

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.

[LisaContractorUmbrella]

Lots of "thoughts" over in general

http://forums.contractoruk.com/gener...y-ask-any.html

http://forums.contractoruk.com/gener...-proposal.html

oh

Don't suppose you can summarise the 50 odd pages of ranting? I got the impression people are not too keen?

[eek]

oh

Don't suppose you can summarise the 50 odd pages of ranting? I got the impression people are not too keen?

Yep 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..

[LisaContractorUmbrella]

I guess you'd see it as a threat to your business model?

Can't say I do - from what I can make out you'd still have the hassle of running your own company (with some additional paperwork) but you'd take home less money - no effect on what we do

[LisaContractorUmbrella]

Yep 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..

Thanks Eek - a perfect CUK summary

[LisaContractorUmbrella]

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.

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