IR35 new rules and VAT

[dx4100]

Again, depends on the client. For many financial services organisations it is very much a cost.

Fair enough. I didn’t know this.

[pr1]

Fair enough. I didn’t know this.

That's ok you just keep asserting how clever you are on a forum to make yourself feel good and we'll keep correcting you

[dx4100]

That's ok you just keep asserting how clever you are on a forum to make yourself feel good and we'll keep correcting you

Oh get you...

Not had your coffee this morning ?

[Bluebird]

Which is potentially a factor in financial services companies being prepared to ditch contractors and take them on as PAYE. They no longer have 20% VAT that they can't reclaim but they do have National Insurance to pay instead so at the worst it's cost neutral to them.

Surely VAT costs more than employers NI?

[DeludedKitten]

Surely VAT costs more than employers NI?

Which is why banks don't care about making people employees - it saves them money.

[Amanensia]

Not to mention they won't pay anything close to contract rates on PAYE as it upsets the permies, HR etc.