BN66 - Time to fight back: Continued

[poppy01]

But can't you get, in effect, insurance by joining the PCG? It is certainly why I am joining them.

it only pays legal costs, not the tax if you lose

[Lewis]

Call me a cynic but, I think you'll find premiums for this sort of insurance will rocket after Dragonfly. Plus, I think you'll find the ins co's will be far more restrictive on what contracts they agree to take on board as a result of the HC decision.

Ins co's measure risk against income and dragonfly severely tipped the scales towards HMRC, especially since HR people seem to want to fall over themselves to make us look like employees.

http://forums.contractoruk.com/626461-post21.html

Yep, if they want the complete peace of mind we can offer TLC35 (providing their working practices are ok of course). I think it's inevitable that we will see some form of increase in TLC purchases and the risk for us obviously increases in hand with that.

Contrary to some assumptions, the premiums haven't increased and the conditions of the policy have remained the same. We will be advising clients of steps they can take to strengthen their case, but we won't be adding any further stipulations.

[ContractIn]

I've just heard second hand from someone who has been in contact with someone at MTM that the judicial review will be heard sometime in September?

Anyone know anything?

No? I been trying to find this out for a couple of weeks. Thinking out loud, if JR is in september could HMRC being holding back sending out closure notices until result of JR?

Update.....
OK Just seen Kiwi's response. Why Are MTM leaving it so late to lodge the appeal?

[Emigre]

No? I been trying to find this out for a couple of weeks. Thinking out loud, if JR is in september could HMRC being holding back sending out closure notices until result of JR?

Update.....
OK Just seen Kiwi's response. Why Are MTM leaving it so late to lodge the appeal?

Spoke with MP yesterday. No news on JR. Its logical to lodge appeal at last minute in order to provide maximum time to identify who is on your side and to engage the right Counsel - the original scheme opinions I understand were given by tax Counsel regularly used by HMRC.

In terms of potential supporters there should be other promoters of the IR35 scheme plus some of the major (and smaller) accounting firms running the developers scheme. It becomes a matter of who is prepared to get involved.

[MuddyFunster]

the original scheme opinions I understand were given by tax Counsel regularly used by HMRC.

As far as I remember, I was told that HMRC approved the use of the scheme and even provided a reference number confirming its use and legality.

[SantaClaus]

How many times have you said you are going then returned?

anyway bye I wish you all the best. I mean it.

ROFL Malvio just cant keep away.

Well, my new career, forex trading from home means there will be zero tax to pay to Hector. Yes Hector , zero, zilch, nada

Spreadbetting is tax free, unless of course they change the law retrospectively But then they'd have to allow the 95% of people that lose to claim their losses back on their tax return

[smalldog]

Dont quite get how HMRC approved the scheme, only then to come back and block it at a later date with BN66, how does that work????

[Hawkwind]

True - but it is a watershed case that has probably established the precedent Hector needed. As I said, I felt it was just a matter of time before IR35 got me. Also running a Ltd wasn't a walk in the park either.
Didn't someone infer that once your dead more dead doesn't make much difference. Or it might have been one of those 'Sheep/Lamb' analogies.

Hi TAF4,

It may have been my "can't be more bankrupt" quote you are thinking of. I'm in a similar position to yourself although I happily ran a Ltd co from 93-03. After a couple of years of struggling with IR35 issues and with S660 on the horizon I decided that there had to be a better way so joined MP. I've been more than happy with them and don't think anyone could have foreseen that HMRC would stoop so low as try retrospective taxation.

Actually we all use HMRC as the culprits when the real issue is the government (HMRC are merely their enforcers). I don't actually believe that this measure is about tax avoidance particularly but just another attack on contracting as a way of working. I heard a rumour that although BN66 originally went back to 1987 the current investiagtion is only going back to 2002 i.e. solely aimed at us, so those of you hoping MP get some support from other parties are probably (hopefully not) are out of luck.

[Ratican]

What to do now??

Brillo Pad (or anybody else who has opinions??), interested to hear what you are planing to do now re. Ltd Co - insurance, etc. I may be in a similar position - still on the MP scheme and thinking about going Limited when my contract is renewed at the end of this month. Something's been holding me back though... I'm just not certain what the best thing to do is:
OPTIONS
1. Stay on current MP scheme - able to find more cash to [ potentially (still think it's unlikely) ] pay HMRC - save as much as I can as well in case this scheme goes the same way. After the JR ruling will have a much clearer idea of what will happen next (only a few months away probably)
2. Ltd - less cash also risky (less than 1) in terms of IR35 and expensive in terms of admin, hassle and prof fees. Also if the current MP scheme goes wonky - only 6 months exposure over the year

What do you think - what are the main arguments for going Limited??

SantaClaus - you know about evaluating risk in your new profession - what's your opinion?

[MuddyFunster]

Dont quite get how HMRC approved the scheme, only then to come back and block it at a later date with BN66, how does that work????

Quite... I think this was said to me by someone at an intermediary company that I dealt with. (I didn't deal directly with MP).