PCG Statement on IR35

[thunderlizard]

Anyway, I say well done to the PCG for raising enough awareness to get IR35 onto the coalition programme.
Now they just need to keep steering the issue a sensible course!

[cojak]

CGT to rise to 40-50%?

[d000hg]

What's CGT got to do with contracting then, I thought we were talking something specific? Doesn't CGT only come in if you're viewed as deliberately making money from your house-sale, i.e if you make a huge profit selling a house when you move, it doesn't apply?

[malvolio]

The point I make is, we're sort of forced into using Ltd (or umbrella) by agencies/clients, or simply that it is a way to pay less tax. I think few of us would say we'd have set up Ltds working as contractors if Sole Trader status a)didn't lead to more tax b)was something agencies were happy with c)had no liability questions. Some would (me, probably since I do hire people for example) but in general Ltd contractors are an anomaly of the system. Nothing wrong at all with us exploiting it, but it's a flaw in the system to start with.

You have a company because of S44-47 (what used to S134c). If that was repealed you could work as Sch D self-employed and IR35 wouldn't even be needed. And the total tax bill on earnings between that and LtdCo is not that great.