IR35 change announced

[swamp]

Would this include Database Administrators?

[malvolio]

Since I'm not IR35 caught, I don't know precisely what I'd have to do if I was. What IS the answer - I always understood you had to pay BOTH sides of NI but the CUK article says it seeks to level how contractors' and employees' earnings are treated.

Are you sure you're cut.....

Ahem. It's simple. If IR35 caught, at year end take your gross income and calculate the PAYE, Employee and Employer NICs on 95% of it and send the cheque off to Hector. The rest you get to keep as net pay. No dividends, of course, since you won't have a profit. There are a few variations on allowable expenses and so on, but basically that's it.

And the keen minded will spot the obvious flaw in Hector's cunning stunt: if the Employer's NICs fell on your putative employer, aka your clilent, you might find IR35 disappearing overnight as they rewrite your contracts to make them properly B2B... Ho hum...

[BentheBA]

Would this include Database Administrators?

Frrom reading the various responses, it looks like a clause designed to stop senior managers and those in controlling positions from being paid via a ltd company.

In reality it will just generate more confusion and ambiguity about whether contractors are "office holders", more erudite responses on forums about reading up on IR35!, an excuse for hmrc to go after anyone with the misfortune of having a job title and nobody really having a clue whether they are really in or out.....

[Precept]

In reality it will just generate more confusion and ambiguity about whether contractors are "office holders", more erudite responses on forums about reading up on IR35!, an excuse for hmrc to go after anyone with the misfortune of having a job title and nobody really having a clue whether they are really in or out.....

Does this little snippet from today's web offerings help:
"Seb Maley, from Qdos Consulting, explained that an ‘office holder’, as defined in HMRC’s status manual is a ‘permanent, substantive position which had an existence independent from the person who filled it, which went on and was filled in succession by successive holders.’"

[ready_to_leave]

err... and arguably that covers every function in any company that is not created and destroyed for a named individual. HMRC could easily argue that this applies to any behaviour that has sequential contractors perform it, even if from your perspective it is transitory and particular.

When drafting legislation it is always discussed as only being interpreted in the narrowest scope and in practice it is always attempted to be applied in the widest possible manner.

Does this little snippet from today's web offerings help:
"Seb Maley, from Qdos Consulting, explained that an ‘office holder’, as defined in HMRC’s status manual is a ‘permanent, substantive position which had an existence independent from the person who filled it, which went on and was filled in succession by successive holders.’"

[SueEllen]

Would this include Database Administrators?

Unless you were the CEO, company secretary, CTO etc of the client company as well, or had no obvious title but had control of a major department of the client company i.e. signed contracts for them - then no.

[fckvwls]

Unless you were the CEO, company secretary, CTO etc of the client company as well, or had no obvious title but had control of a major department of the client company i.e. signed contracts for them - then no.

What about a senior interim manager?

[SueEllen]

What about a senior interim manager?

The question is "What do you control?"

Titles in IT tend to mean very little it's what you actually do that counts.

[Precept]

What about a senior interim manager?

Try this ofering for guidance: Contractors' Questions: How will the IR35 amendment affect me? :: Contractor UK

[d000hg]

Are you sure you're cut.....

As I said I'm not inside IR35 so the details what I'd have to pay aren't something I need to know, any more than any other area of irrelevant tax law

Ahem. It's simple. If IR35 caught, at year end take your gross income and calculate the PAYE, Employee and Employer NICs on 95% of it and send the cheque off to Hector. The rest you get to keep as net pay. No dividends, of course, since you won't have a profit. There are a few variations on allowable expenses and so on, but basically that's it.

So "leveling how employees and contractors'/PSCs' income is treated" is not even slightly true.

And the keen minded will spot the obvious flaw in Hector's cunning stunt: if the Employer's NICs fell on your putative employer, aka your clilent, you might find IR35 disappearing overnight as they rewrite your contracts to make them properly B2B... Ho hum...

Doubtful. Isn't the whole point that HMRC are saying a client 'officer' should by definition be an employee?