MVL - Autumn Statement

[jamesearljones]

It looks like the government has just published the draft bill.

I'm a little unclear on what everything means. When they say the effective date is April 6th, what does that refer to. And how would that affect a wind up starting in say 1 month from now.

[MrMarkyMark]

When they say the effective date is April 6th, what does that refer to.

New tax year, maybe?

[MrMarkyMark]

So now to get the ER tax relief you have to be out, after, for 2 years.

As this now sets a defined time limit in stone, I guess that puts, previously, perceived ones of say 6 months no longer relevant.
If you were to close down prior to April 2016, I cannot see why you couldn't just start right up again.

[jamesearljones]

The other thing that is confusing concerns the timings of distributions in transaction in securities:

The amendments made by this section have effect in relation to—
(a) a transaction occurring on or after 6 April 2016, or
(b) a series of transactions any one or more of which occurs on or after that
date.

[MrMarkyMark]

I would be very surprised if something, already, in flight would be subject to the law change.

Too messy.

[TheFaQQer]

https://www.gov.uk/government/public...-distributions

[jamesearljones]

Yep, been through that. As always it is a bit confusing to the untrained legal eye.

[MrMarkyMark]

FTFY

As always it is deliberately confusing to anyone, apart from the author.

[alphadog]

That two year thing is nasty.

Presumably becoming a permo won't be classed as being "involved in a similar trade or activity"???

[Waldorf]

Seems a reasonable crackdown, working through a PSC already effectively avoids paying NIC and the current rules enable contractors to 'piggybank' much of their earnings and pay only 10% tax when they close the company down.

It seems reasonable that as contractors we shouldn't take the p1ss and pay the tax due on our income.