IR35 repealed

[Jolie]

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).

It was an easy gamble for the Tories, knowing that in all likelihood they would be losing the next election. In that aspect, it's a win win. If they pull it off, they get another 5 years, and if they don't, they would have lost anyway.

However, KK has already hinted there are more cuts coming, and if the tax burden is more favourable to everyone, then it will be a moot point. Especially if their promise to simplify the whole tax system comes to fruition.

What we are likely to also see is massive cuts to government departmental spending, and hopefully an overhaul of HMRC. Cutting back on tax regulation and civil servants alongside simplification should remove uncertainty and risk, which would be overturned should Labour get in.

[GregRickshaw]

/s

I'm looking forward to finding an accountant who will do everything for me.....

[Lance]

It was an easy gamble for the Tories, knowing that in all likelihood they would be losing the next election. In that aspect, it's a win win. If they pull it off, they get another 5 years, and if they don't, they would have lost anyway.

However, KK has already hinted there are more cuts coming, and if the tax burden is more favourable to everyone, then it will be a moot point. Especially if their promise to simplify the whole tax system comes to fruition.

What we are likely to also see is massive cuts to government departmental spending, and hopefully an overhaul of HMRC. Cutting back on tax regulation and civil servants alongside simplification should remove uncertainty and risk, which would be overturned should Labour get in.

sounds like an ERG wet dream.... It'll never happe..... oh hang on!!

[eek]

/s

I'm looking forward to finding an accountant who will do everything for me.....

I'm actually seriously considering it as I suspect I'm one of the few people who could design things to ensure you don't fall into the MSC legislation (i.e. use FreeAgent and guide clients to manually enter their desired salary). Oh and document every decision for when HMRC comes calling.

[herman_g]

As a former UK-based contractor, it's nice to hear some political thinking towards rolling back IR35. However, Truss and her government aren't likely going to make it until Christmas.

[Lance]

As a former UK-based contractor, it's nice to hear some political thinking towards rolling back IR35. However, Truss and her government aren't likely going to make it until Christmas.

next PM after Liz Truss odds.

Keir Starmer 10/11
Boris Johnson 11/1
Rishi Sunak 20/1
Kemi Badenoch 23/1

PM after next GE

Keir 8/11
BoJo 20/1
Truss 5/4
Rishi 20/1

So the markets reckon Truss is likely to be here at next GE and then lose.
But also can see a possible Boris return before that.
I cannot see the votes going to the '22 committee as that's probably slightly more damaging (electorally) than another 18 months of this sh*tshow.

[northernladuk]

next PM after Liz Truss odds.

Keir Starmer 10/11
Boris Johnson 11/1
Rishi Sunak 20/1
Kemi Badenoch 23/1

PM after next GE

Keir 8/11
BoJo 20/1
Truss 5/4
Rishi 20/1

So the markets reckon Truss is likely to be here at next GE and then lose.
But also can see a possible Boris return before that.
I cannot see the votes going to the '22 committee as that's probably slightly more damaging (electorally) than another 18 months of this sh*tshow.

I must admit I can't see any new government U turning on this when it's already coming and they also need to come in and look business friendly. Not really the way of a new gov coming in and immediately pissing off businesses. Maybe later but they've got to get some vote winners in to start off with. Causing mayhem by doing a U turn just for a tax grab that isn't a great crowd pleaser. Strong action later maybe but not for the forseeable I don't think.

At this point IMO, expecting this to hit and be around for a couple of years at least is the way forward.

But we didn't see this coming in the first place so who the hell knows. I don't think getting in to political discussion about who is in or out and which party in power is even remotely useful though.

[eek]

I must admit I can't see any new government U turning on this when it's already coming and they also need to come in and look business friendly. Not really the way of a new gov coming in and immediately pissing off businesses. Maybe later but they've got to get some vote winners in to start off with. Causing mayhem by doing a U turn just for a tax grab that isn't a great crowd pleaser. Strong action later maybe but not for the forseeable I don't think.

At this point IMO, expecting this to hit and be around for a couple of years at least is the way forward.

But we didn't see this coming in the first place so who the hell knows. I don't think getting in to political discussion about who is in or out and which party in power is even remotely useful though.

I've seen a costed plan that introduces a 43% rate at £100,000 and removes all the tapers that kick in at that point.

That generates the same as the current 45% rate does and removes a whole pile of disincentives as people reach £100,000.

[malvolio]

,,,
But we didn't see this coming in the first place so who the hell knows. I don't think getting in to political discussion about who is in or out and which party in power is even remotely useful though.

I tend to agree. Labour have yet to come up with a single policy on anything; Starmer and Reeves seem to have separate policies in mind, for example. also the left wing are still there and the continuing union-led (and utterly meaningless) strikes are damaging Labour's position. Nor will people be all that happy with the apparent engineering of campaigning to generate a sort of PR result between the current opposition parties.

We need to wait and see if the new approach does what it promises to do, it's far too early to write it off, especially since most (but not all) of the pound's problems are due to speculation rather than long term distrust. Other countries, including the Euro, are doing worse, it's the dollar being strong rather than everyone else being weak.

And the usual mantra of "They've been in power too long, it's time for a change" sums up everything that's wrong with the electorate.

[Lance]

I tend to agree. Labour have yet to come up with a single policy on anything; Starmer and Reeves seem to have separate policies in mind, for example. also the left wing are still there and the continuing union-led (and utterly meaningless) strikes are damaging Labour's position. Nor will people be all that happy with the apparent engineering of campaigning to generate a sort of PR result between the current opposition parties.

We need to wait and see if the new approach does what it promises to do, it's far too early to write it off, especially since most (but not all) of the pound's problems are due to speculation rather than long term distrust. Other countries, including the Euro, are doing worse, it's the dollar being strong rather than everyone else being weak.

And the usual mantra of "They've been in power too long, it's time for a change" sums up everything that's wrong with the electorate.

you might be right, but I believe the speculation is based on distrust.
The people who lend the government money (that's our pension funds to a large part) don't trust the government so want more yield. And the UK government has no choice but to pay the market price for those yields.
If we get 2.5% growth before the next GE then it will be claimed as a roaring success. What cost that 'success' comes with is different.

And if they don't get 2.5% (pretty unlikely cos if it was that easy we'd have done it after the financial crisis) then Starmer/Reeves will have a free hand to do what they want with the support of the SNP (bye bye Scotland )

you heard it hear first.

What I do agree with, is that the policy is staying. They've rolled the dice and crossed their fingers. Just got to let it play out.