Expenses - I don't believe this

[LisaContractorUmbrella]

Well here are the stats:-

IR35 full yield and investigation figures revealed | PCG

PCG believe there to be 1.4 millions freelancers in the UK. Between 2006 and 2011 only 322 were investigated, these are reviews opened, not challenged by PCG.

So 322 out of 1.4 million, which generated very little tax as most were lost by HMRC and proved to be outside.

So which bit of everyone dont you agree with. If I were you Lisa, I would focus on providing the best service as an umbrella (which perhaps you do as my experience was with Parasol) rather than trying to instil the fear of IR35.



No. The stats are total cases opened and tax generated.

Not trying to instil fear at all - just trying to protect newbies who may read your post and think that everyone is outside IR35

[jmo21]

Your points don't prove everyone is outside IR35, just that HMRC have hardly investigated anyone.

Indeed.

What the stats actually show is that the odds on being shafted by IR35 are very low.

So "very low odds" versus "everyone is outside IR35".

[escapeUK]

I think we are all taking the everyone as bit literal, especially when the next bit of what I said was, if not change to a different contract.

But given that 0.00023% are investigated to me thats close enough to everyone.

[Wanderer]

So 322 out of 1.4 million, which generated very little tax as most were lost by HMRC and proved to be outside.

So which bit of everyone dont you agree with.

I disagree with your implication that every one of the 1.4 million freelancers trades as a Personal Service Company outside IR35...

I also disagree with the PCG's spin that IR35 doesn't net very much for the government. The threat of IR35 causes people to comply with the rules and a lot of people who would be borderline cases choose to not bother with the hassle of incorporation and go through an umbrella where they can have a nice quiet life with little risk of a tax investigation hanging over their heads...

[LisaContractorUmbrella]

I think we are all taking the everyone as bit literal, especially when the next bit of what I said was, if not change to a different contract.

But given that 0.00023% are investigated to me thats close enough to everyone.

But the yield to the revenue from those investigations was £5,442,299.00 or almost £17k per person. Also the IR35 status declaration is now mandatory on the self-assessment form and if you claim to be outside you'll have to prove it as I understand things so I can't help thinking that, in one foul swoop, our friends at HMR&C have made their investigations easier and quicker. Therefore the chances of there being far more moving forward are quite high.

[moggy]

But the yield to the revenue from those investigations was £5,442,299.00 or almost £17k per person. Also the IR35 status declaration is now mandatory on the self-assessment form and if you claim to be outside you'll have to prove it as I understand things so I can't help thinking that, in one foul swoop, our friends at HMR&C have made their investigations easier and quicker. Therefore the chances of there being far more moving forward are quite high.

plus much more targeted investigations I would imagine.

[escapeUK]

But the yield to the revenue from those investigations was £5,442,299.00 or almost £17k per person. Also the IR35 status declaration is now mandatory on the self-assessment form and if you claim to be outside you'll have to prove it as I understand things so I can't help thinking that, in one foul swoop, our friends at HMR&C have made their investigations easier and quicker. Therefore the chances of there being far more moving forward are quite high.

Of course its not Lisa. The figure of £17k, remember that would cover both employees and employers NI. So roughly what someone would pay on £95K. What I suspect happens, is that a high number proportion pay nothing as they are found outside. Yes thats right, To quote PCG

"More than 500 PCG members have been put through these investigations, which can be extremely stressful, time-consuming and costly, not to mention damaging to client contractor relationships. All but three of them were found to be outside the IR35 rules. We have to ask whether this dogged pursuit of freelance contractors and small business owners is justified. How much is each investigation costing the taxpayer and how much extra tax does it yield?"

So 500 out of 1.4 million , and out of that 500 only 3 found to be "guilty"

They can target as many investigations as they like, but with only 0.006% success rate it makes more sense to try and make people feel nervous and therefore use an umbrella voluntarily despite the risks being minuscule. I think my everyone stance is justified.

[BolshieBastard]

I am on a 3 month contract and it was exteded by a further 7 weeks. I travel to different sites every week from Swindon in the south to Aberdeen in the north and today I received this from my umbrella company.

"As you have only been engaged on one assignment whilst in our employment HMRC now regard the workplace as a permanent workplace and you are no longer able to claim travel and accommodation expenses.

That applies to your final invoice and I have deleted the expenses from the timesheet and raised a replacement invoice."

I can only find the 24 month rule and the 40% rule, neither of which apply to me and I can find nothing that says HMRC consider you to be permanent because you only work on one assignment. Please advise.

This is why you should just say 'No!' to brollies.

You arent in control of 'your' own money.

[fraymond]

Is there a good reason not to just close down your ltd co every couple of years if you are so paranoid about this kind of stuff? (or setting up a subsidiary for each new contract) That's what the builders do everytime a new block of flats are built. It's called limiting your liability.

Funny how the umbrella company reps post here offering "advice".

[northernladuk]

Is there a good reason not to just close down your ltd co every couple of years if you are so paranoid about this kind of stuff? (or setting up a subsidiary for each new contract) That's what the builders do everytime a new block of flats are built. It's called limiting your liability.

Funny how the umbrella company reps post here offering "advice".

It's not funny at all. its rather helpful to have someone in the trade posting. You posted some real crap this morning. Do you think before posting or are you just trolling?