Arctic Systems in lords

[Old Greg]

That's what it says ...



(http://www.pcg.org.uk/cms/index.php?...=2712&Itemid=1)

But I'm not sure that gifted or purchased are the same as the original distribution on co. set up.

[ASB]

Any income that can reasonable be attributed to your work for a particular client on a caught contract is caught by IR35, even if you own less than 5%. If IR35-avoidance was as easy as getting 20 contractors together it would never have been a problem.

http://www.opsi.gov.uk/acts/acts2000/00017-av.htm#sch12

What you say is correct but:-

20 people all with 5%. Business therefore provides many people to many clients.

Everybody gets some sort of salary (small). The salry is outside the regs because it is subject to schedule E.

Now, everybody has the same ordinary shares and consequntly the same dividends. The requirement for liability - assuming no material interest which 5% is not - is:-

"(ii) can reasonably be taken to represent remuneration for services provided by the worker to the client."

Now, I don't think (perhaps I am just a born optimist) that the dividends would be caught by this. They represent remuneration as a reuslt of the collective efforts of 20 people to 'n' clients.

It would be difficult to set up a working structure along these lines though. For ease lets suppose the limit is 50% and you generate 100k of revenue but me only 50k.

Assuming no costs we get 75k each. i'd be pleased but you wouldn't.

If we then said Ok, I'll have no salary and you can have 50k then we would both get 50k - but in this case it would fail the test.

[dude69]

But I'm not sure that gifted or purchased are the same as the original distribution on co. set up.

Any ideas? My company has 100 ordinary shares of £1, and (when set up) distributed 1 share to me and 1 share to the missus. We both get out our ~£37k a year.

[Robot]

Responding to the ruling, ....

exchequer secretary to the treasury Angela Eagle said in a statement: "It is the government's view that individuals involved in these arrangements should pay tax on what is, in substance, their own income and that the legislation should clearly provide for this.

"The government will therefore bring forward proposals for changes to legislation to ensure this is the case. In the meantime, HMRC will apply the law as elucidated by the House of Lords and will be providing guidance in due course."

[pisces]

Law To Be Changed?

http://www.thisismoney.co.uk/small-b...&in_page_id=10

I wonder if this will affect single contractors as well?

[Lewis]

exchequer secretary to the treasury Angela Eagle said in a statement: "It is the government's view that individuals involved in these arrangements should pay tax on what is, in substance, their own income and that the legislation should clearly provide for this.

"The government will therefore bring forward proposals for changes to legislation to ensure this is the case. In the meantime, HMRC will apply the law as elucidated by the House of Lords and will be providing guidance in due course."

Depressing

So how quickly can the law be changed, assuming they rush it through, which I assume they will? Do we have till the next budget?

[Bluebird]

Depressing

So how quickly can the law be changed, assuming they rush it through, which I assume they will? Do we have till the next budget?

There's a budget in the autumn...