IR35 repealed

[Lance]

On another, related not.... In fact back on topic.

Seems odd they'd back down on this. It's in line with the policy after all...
Plan to pay Liz Truss’s chief of staff through firm is dropped after criticism (msn.com)

[malvolio]

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.

Don't forget that some EU rules around investment of things like pension funds are still in place in the UK. If they are removed, there is a lot more available funding that can be used for infrastructure investment than HMG can access on the open market, and at better rates.

WE know the long term cost, as things stand, is around £450bn - which is rather less than Covid cost us. And that is based on the status quo, if growth kicks off like they hope it does (perhaps "are praying for" is a better term), that will reduce considerably.

[Lance]

Don't forget that some EU rules around investment of things like pension funds are still in place in the UK. If they are removed, there is a lot more available funding that can be used for infrastructure investment than HMG can access on the open market, and at better rates.

WE know the long term cost, as things stand, is around £450bn - which is rather less than Covid cost us. And that is based on the status quo, if growth kicks off like they hope it does (perhaps "are praying for" is a better term), that will reduce considerably.

indeed.

And... Inflation is a feature of the policy not a fault.
Best way to reduce real debt is to inflate it away. That's free.

Bloody good job the debt is in £££ and not $ or EUR

[malvolio]

On another, related not.... In fact back on topic.

Seems odd they'd back down on this. It's in line with the policy after all...
Plan to pay Liz Truss’s chief of staff through firm is dropped after criticism (msn.com)

To be entirely accurate, a director of a company holding a substantive post in another company has to be paid a salary net of taxation. That predates IR35 and was the rule that caused all sorts of problems in the early 2000s where senior civil servants were ignoring it (and that prompted the Alexander (?) review that was one of the drivers for the later reforms), the prime example being the Student Loan company case.

[GregRickshaw]

I think someone asked for this when it was available to watch.

https://www.kingsbridge.co.uk/landin.../#ir35-webinar

[jamesbrown]

To be entirely accurate, a director of a company holding a substantive post in another company has to be paid a salary net of taxation. That predates IR35 and was the rule that caused all sorts of problems in the early 2000s where senior civil servants were ignoring it (and that prompted the Alexander (?) review that was one of the drivers for the later reforms), the prime example being the Student Loan company case.

I doubt the office holder rule would apply to Fullbrook, although I could be wrong.

[herman_g]

"We will repeal 2017 and 2021 reforms to IR35" Kwarteng just said in his budget speech.

It was clear that was not going to last long. Until the whole Brexit gang is no longer involved in running the country, no real progress towards making the UK more liveable and more business friendly will take place. Whenever a reasonably non-ideological government comes into power, if it makes business sense, IR35 will be repealed then.

[jamesbrown]

Whenever a reasonably non-ideological government comes into power, if it makes business sense, IR35 will be repealed then.

Good luck with that.

[Fred Bloggs]

IR35 repealed

Oh no it's not......

[jamesbrown]

Yes, junked along with everything else that didn't already have a legislative footprint, not surprising. Hard to reverse the SDLT cut, for example, as that was already in place.