IR35 repealed

[ladymuck]

Blimey the gift that keeps on giving...

Dividend taxation also changed...

Time to put the paint brushes down I think...

From April 2023:
• the dividend ordinary rate of 8.75% will reduce to 7.5%
• the dividend upper rate of 33.75% will reduce to 32.5% and
• the dividend additional rate will be abolished.

Oh! I missed that one.

[northernladuk]

Personally, I am skeptical about that. This will be very much sector-by-sector. If big competitors do it, others may follow. But if they don't, it will probably be status quo. There is little incentive to reverse blanket bans, IMHO, because there is no large administrative saving here, they simply bypassed Chapter 10 altogether. That said, I am not confident in making this prediction, just skeptical that it will revert. The other uncertainty is what happens in, say, 2025 if/when Labour gets in, which is looking increasingly likely. Many may decide to wait and see given the legislative uncertainty.

Got to say I also think the same but blanket bans were such a bad idea (for us at least) in the first place who knows which way it will go. I'm finding it hard to believe a large bank will just drop the blanket ban and allow 1000's of contractors to go outside when they know full well they wouldn't allow a sub/D&C and whatever. Seems madness letting them in when they know they'll fail an investigation.. but there is no come back on them so why should they be bothered. Will be interesting.

Good news all this is going but I can't help thinking something is going to go wrong just letting everyone go back outside when there is undeniable evidence many roles were definitely inside. I am happy to be proven wrong as this rolls on but it just doesn't feel right at the moment.

[northernladuk]

Thinking about it I'll be interested to see what happens in Public Sector. Being close to one particular agency that were doing a pretty good job of it I saw a good mix of roles inside and outside. All done properly and the true bums on seats went inside where other projects and work had outside people in correctly (in the most part) determined. So will they just drop the whole thing knowing full well have their requirements are for inside. A couple of agencies were on the hook for incorrect determinations so is this a chance for them to drop the risk and walk away or will continue to cause nervousness so might be better carrying on with what they know.

[SimonMac]

Got to say I also think the same but blanket bans were such a bad idea (for us at least) in the first place who knows which way it will go. I'm finding it hard to believe a large bank will just drop the blanket ban and allow 1000's of contractors to go outside when they know full well they wouldn't allow a sub/D&C and whatever. Seems madness letting them in when they know they'll fail an investigation.. but there is no come back on them so why should they be bothered. Will be interesting.

Good news all this is going but I can't help thinking something is going to go wrong just letting everyone go back outside when there is undeniable evidence many roles were definitely inside. I am happy to be proven wrong as this rolls on but it just doesn't feel right at the moment.

I suppose the big question is, how bad were blanket decisions for clients? They still filled the roles so they have little incentive to change anything which has no impact on them

[eek]

I suppose the big question is, how bad were blanket decisions for clients? They still filled the roles so they have little incentive to change anything which has no impact on them

You miss a very important secondary question. If we shift this role to outside IR35 can we knock the rate down 15-20%.....

[Guy Incognito]

you can access 65-75% of your money risk free via a limited company

Ahem.

[SimonMac]

You miss a very important secondary question. If we shift this role to outside IR35 can we knock the rate down 15-20%.....

GPWM!

[dingdong]

The way things are going we might have a new chancellor before any changes in rules would take effect.

[youngguy]

Thinking about it I'll be interested to see what happens in Public Sector. ..... So will they just drop the whole thing knowing full well have their requirements are for inside........

Will be interesting indeed. It's taken various bits of the public sector quite a long time to get some semblance of process around inside and outside (including umbrella PSLs, intermediate agencies etc). I think I am correct in saying most depts will await further guidance from treasury etc rather than start making decisions dept by dept. I also know of depts that start contract renewals months out and often don't get paperwork sorted for the new FY, so they need to make some decisions pretty quickly if they want contractors to consider the sector come April.

What happens to rates I wonder? I'm almost on a rate similar to my old 'outside rate' and without any risk of ever being caught. I never thought that would be appealing to me, but it might be given where we are Vs CEST all over again and the likelihood that Labour are in 2 yrs down the track (and further change might happen).

[youngguy]

You miss a very important secondary question. If we shift this role to outside IR35 can we knock the rate down 15-20%.....

And this is where it could feel as if rates go down and risk for Contractors goes up.

Newbies need to ensure they don't take Agents at their word and get everything checked. Of course part of the issue was whilst you can check the contract, it is not really possible for a contractor to determine ways of working ahead of a role starting.