Government to ban avoidance scheme users

[LisaContractorUmbrella]

from Public Sector Contract New rules use government buying power against tax avoidance - HM Treasury

Reading through the guidance, the supplies can be from individuals, partnerships or companies

[The Spartan]

Hopefully it would lead to them offering massive rates to get people in if they're not allowed to work through their LTD companies, but we'll probably just see an influx of Bob's and more failed government projects and if I recall correctly Bob's can't be hired for SC work.

[b0redom]

What utter tripe. If it's unacceptable then make it illegal. Usual load of tulip.

[IR35FanClub]

I'm past caring. Won't be working for the governemnet again till they bring in a flat rate tax and get rid of NI. Or I may just leave the country. And take all my cash with me. Thre's plenty of places you can make a living and not need to work as much to keep yourself afloat. Especially if you don't need to go back to the UK again. Not so good if you intend to keep property.

[The Spartan]

I'm past caring. Won't be working for the governemnet again till they bring in a flat rate tax and get rid of NI. Or I may just leave the country. And take all my cash with me. Thre's plenty of places you can make a living and not need to work as much to keep yourself afloat. Especially if you don't need to go back to the UK again. Not so good if you intend to keep property.

Very true, be aware that new rules come into play in April to determine residency. Seeing as you mentioned property I can't remember what they are off hand but I know Lisa created a post with a link to the PDF draft

EDIT:
Found it
http://www.hmrc.gov.uk/budget-update...-test-note.pdf

[Nixon Williams]

I believe this is aimed at the large professional bodies such as Price Waterhouse Coopers, KPMG etc rather than small operators, so I am confident it will not apply to most contractors.

The operators of offshore schemes are also unlikely to be affected as they are probably not trying to obtain government contracts!

I do think that it is evidence of the government's attack on aggressive tax avoidance schemes, I am sure we will see more in the Budget next month!

[LisaContractorUmbrella]

I believe this is aimed at the large professional bodies such as Price Waterhouse Coopers, KPMG etc rather than small operators, so I am confident it will not apply to most contractors.

The operators of offshore schemes are also unlikely to be affected as they are probably not trying to obtain government contracts!

I do think that it is evidence of the government's attack on aggressive tax avoidance schemes, I am sure we will see more in the Budget next month!

Along the lines of 100% of all earnings are payable to the Government who will then distribute it accordingly

[Nixon Williams]

Along the lines of 100% of all earnings are payable to the Government who will then distribute it accordingly

Don't give them ideas!!

[LisaContractorUmbrella]

Don't give them ideas!!

Just reading through the guidance notes again - this will apply to 'sub-contractors performing a significant part of the contract' . Just wondered what the position would be with contractors working through an agency - will the agency's tax position be at issue or will it be agency and contractors>

[BolshieBastard]

from Public Sector Contract New rules use government buying power against tax avoidance - HM Treasury

Reading through the guidance, the supplies can be from individuals, partnerships or companies

I put a link in the public sector thread about this.

It applies (or will do) to companies and individuals.

Should imagine they'd have great difficulty getting anyone eligible to work for them unless they give some sort of amnesty!