IR35 review to report on March 10

[Contractor UK]

IR35 review to report on March 10 :: Contractor UK - Contracting News and Guides

Morning all, just thought we'd flag up the date the OTS's report is expected..

[Ruprect]

Is anyone expecting anything other than us all having to bend over and take it up the ?

[Contractor UK]

Just case some haven't seen it, we've got some exclusive comment from the report's author on why there are no 'easy answers' on the IR35 review

[DonkeyRhubarb]

Just case some haven't seen it, we've got some exclusive comment from the report's author on why there are no 'easy answers' on the IR35 review

“This would open the floodgates to abuse by limited companies and leave a hole in an already depleted exchequer.”

The Treasury is mindful of such abuse: while the annual yield from IR35 is estimated at £1million (based on 2007 figures), the revenue loss from a new dash to incorporate could run into the hundreds of millions.

This made me howl. It seems they have completely missed the elephant in the room.

IR35 has arguably been the biggest driver of mass marketed retail tax avoidance schemes over the past 10 years. I've lost count of the number of legislative measures that have had to be introduced in successive budgets to combat this.

Until something is done about IR35, tens of thousands of contractors will continue to be seduced by the "85%" schemes.

Can you guess who would be the biggest losers if IR35 was abolished? That's right, the tax firms creaming 10% in fees from these schemes, leaving the Exchequer with 5%!

Either HMRC and Treasury officials are completely thick OR they are concealing the link between IR35 and widespread tax avoidance from the OTS and possibly Ministers.

[malvolio]

Just case some haven't seen it, we've got some exclusive comment from the report's author on why there are no 'easy answers' on the IR35 review

Interesting read. How come that none of the quotes or comments are attributed to the PCG I wonder...?

[ChimpMaster]

I completely agree with DR's post above.

I wish I had something more to say but don't at this stage.

[TykeMerc]

“This would open the floodgates to abuse by limited companies and leave a hole in an already depleted exchequer.”

The Treasury is mindful of such abuse: while the annual yield from IR35 is estimated at £1million (based on 2007 figures), the revenue loss from a new dash to incorporate could run into the hundreds of millions.

This made me howl. It seems they have completely missed the elephant in the room.

IR35 has arguably been the biggest driver of mass marketed retail tax avoidance schemes over the past 10 years. I've lost count of the number of legislative measures that have had to be introduced in successive budgets to combat this.

Until something is done about IR35, tens of thousands of contractors will continue to be seduced by the "85%" schemes.

Can you guess who would be the biggest losers if IR35 was abolished? That's right, the tax firms creaming 10% in fees from these schemes, leaving the Exchequer with 5%!

Either HMRC and Treasury officials are completely thick OR they are concealing the link between IR35 and widespread tax avoidance from the OTS and possibly Ministers.

Nail meets rapidly moving hammer moment.

Well put that Donkey.

[Jog On]

NICS on divis are still a lot more tax efficient than PAYE.

Are they going to make everyone pay NICs on divis? I seriously doubt that..

I trust our friends in the accounting industry will not let us down. What's good for Philip Greene/MPs/super rich political party donors is good for the gander!

[pastalista]

“This would open the floodgates to abuse by limited companies and leave a hole in an already depleted exchequer.”

The Treasury is mindful of such abuse: while the annual yield from IR35 is estimated at £1million (based on 2007 figures), the revenue loss from a new dash to incorporate could run into the hundreds of millions.

This made me howl. It seems they have completely missed the elephant in the room.

IR35 has arguably been the biggest driver of mass marketed retail tax avoidance schemes over the past 10 years. I've lost count of the number of legislative measures that have had to be introduced in successive budgets to combat this.

Until something is done about IR35, tens of thousands of contractors will continue to be seduced by the "85%" schemes.

Can you guess who would be the biggest losers if IR35 was abolished? That's right, the tax firms creaming 10% in fees from these schemes, leaving the Exchequer with 5%!

Either HMRC and Treasury officials are completely thick OR they are concealing the link between IR35 and widespread tax avoidance from the OTS and possibly Ministers.

Of course this is completely true. The number of 85% schemes has increased proportionately with the complexities of the tax code. Many contractors now seem to operate on the basis that even if one incorporates and plays by the rules, an investigation still may follow and the costs will rack up. At least if they join an 85% scheme, there may have to be legislation introduced to shut it down and they won't be alone if they are investigated.

Didn't we all know that the OTS would be another Government misnomer? OTG (Office of Tax Grabbing) would have surely been more appropriate?

The two suggestions outside of bringing tax and NI under one banner are ok but let's see if we can guess which one the government will want to adopt?

Flat rate taxation for contractors is the way forward. Introduce a level percentage set at a resonable level with no expenses, deducted at source and guaranteed not to exceed a certain threshold and I think most would be happy. As an allied measure, make it illegal to operate in any other way as a contractor and forget all of the daft side rules. Easy to administer, cheap to administer, obviates the need for avoidance, no need to incorporate and have all of the associated hassles. It would also provide an easy way for Hector to know what the tax take would be each year.

Ah well, I can dream.

Pastalista

[Pacciae]

interesting dont you think that organisations such as Bauer & Cottrell who by the way were involved with IR35 reforms are still going to pofit from IR35. it is just not in their interest to get IR35 abolished because they've a vested interest in keeping IR35 going along with the other organisations that feed off the contracting market.