Liz Truss &IR35

[SussexSeagull]

so did you tell them that IR35 is an absurd and unfair tax law? And what did they say?

Probably wouldn't know what IR35 is.

For what it's worth when I have talked to most permies about contracting they like the idea of the money but not the insecurity.

[eek]

Probably wouldn't know what IR35 is.

For what it's worth when I have talked to most permies about contracting they like the idea of the money but not the insecurity.

That's the thing - you are swapping money for insecurity.

The tax part of that is irrelevant to the equation - you are still being paid more than a permie....

[PerfectStorm]

Probably wouldn't know what IR35 is.

For what it's worth when I have talked to most permies about contracting they like the idea of the money but not the insecurity.

Had a few of the same conversations myself. People who prefer to securely earn tuppence ha'penny rather than do a lot better with a lot less stress and easily cover any down time.

[NotAllThere]

Utterly irrelevant? So you don't expect to be compensated financially for losing the benefits of permanent employment?

I don't care about being compensated - the higher rates do that. I don't expect to be penalised financially for losing the benefits of permanent employment.

Back in 1999, an IR35 consisting of "if you're caught by in the intermediary legislation you'll pay employee's NI on your dividend income", we'd have shrugged our shoulders and the PCG would never have come into being. With that, we'd pretty much have been saying the same tax rates as permies. As it is, contractors pay higher tax rates than permies, can't get tax deductions on expenses, etc. etc.

[eek]

I don't care about being compensated - the higher rates do that. I don't expect to be penalised financially for losing the benefits of permanent employment.

Back in 1999, an IR35 consisting of "if you're caught by in the intermediary legislation you'll pay employee's NI on your dividend income", we'd have shrugged our shoulders and the PCG would never have come into being. With that, we'd pretty much have been saying the same tax rates as permies. As it is, contractors pay higher tax rates than permies, can't get tax deductions on expenses, etc. etc.

No - contractors are being shown an "Umbrella" rate (by agencies) that is significantly different from the rate they are actual paid at the end of the day. That isn't being taxed more - it's being lied to....

[mallisarealperson]

What is permanent anyway.

[mogga71]

What is permanent anyway.

Well she was kinda true to her word.

[rocktronAMP]

Well she was kinda true to her word.

I was too busy to take it all in.

IR35 is not finished, but the newer Off Payroll Worker rules introduced for public sector (2017) and then private sector (2021) are being reversed next year. We will have wait until the treasury and revenue release the details. For now this is a welcomed idea. I might just return to contracting then, however, I feel the rates are going to suck by the time April 2023 rolls around. It still does not look good for businesses when the energy bills restriction end for them in 6 months time.

Did they say anything about the Loan Charge? (Maybe that should be on a separate forum thread)

[data001]

this thread aged well

[eek]

this thread aged well

Which shows how left field the announcement on Friday was - literally no-one was expecting it or prepared for it...