Death of Composite Co's?

[VectraMan]

2 weeks into first ever contracting job, stupidly fell for the Giant blurb. Intended to use Umbrella to test waters of contracting, as this contract is (currently) for 3 months.

IIRC (and please don't rely on what I say), the treasury announcement said the new rules would apply to income after 1st April 2007. Which kind of implies that you're definitely safe until then.

[VectraMan]

At least someone has a fighting chance with an own Ltd.

The MSC rule appears to be saying that: working through one always equals the equivilent of inside IR35 (and TBH, not before time)

tim

It's hard to see the composites as anything other than a tax avoidance scam, but as with the argument against IR35, the treasury are the ones that make the rules and so they can't complain when people follow the rules. None of these issues would ever exist if dividends were taxed the same as salary.

I agree we'll probably soon be facing IR35v2, but at least if they manage to be clear on what the rules actually are this time around it'll remove the uncertainty.

[monkeygeorge]

IIRC (and please don't rely on what I say), the treasury announcement said the new rules would apply to income after 1st April 2007. Which kind of implies that you're definitely safe until then.

I agree, stick with Giant for now until you know you'll have to leave. That's what I'm gonna do.

You might even give up contracting before April!