Labour cosying up to contractors

[Zero Liability]

Until we all get taken in by their sincerity and progressiveness, then they introduce a new 60% CT rate for these new 'corporate vehicles'

No thanks.

Yes, I wouldn't waste a vote on them, but it's a reversal of their previous attitude on the face of it. Unless this is what they mean by 'scrutinising'. It could just be a backhanded way of ridding of IR35 which is blatantly unfit for purpose, and finding another way to rake in contractor income. Or they could just be vote hungry, as the polls show a very slim lead over the Tories and Milliband is an unpopular twat.

Still, if they're poised to potentially win, it's worth keeping an eye on them.

[eek]

didn't think to come here and ask what CUK thought.

That's probably for the best really... Can you imagine what a manifesto written in general would contain....

[jamesbrown]

The IR35 HMRC business rules which gives you points for concurrent clients...

The point is that it has very little bearing in terms of IR35 case law (this applies to the BETs more generally), so it's very odd to single this out. It has no practical significance at present and would continue to have no practical significance.

Edit: come to think of it, I don't recall that this factors in the BETs either!

[RasputinDude]

I find it very hard indeed to believe any of that. To Labour the idea of being an independent freelancer is completely anathema - these are the people that perceive us as scabs and tax evaders.

[vwdan]

I find it very hard indeed to believe any of that. To Labour the idea of being an independent freelancer is completely anathema - these are the people that perceive us as scabs and tax evaders.

I don't think being left wing and pro union is at all irreconcilable with contracting.

[tractor]

...

I find it very hard indeed to believe any of that. To Labour the idea of being an independent freelancer is completely anathema - these are the people that perceive us as scabs and tax evaders.

While their members, leader and ex-leaders all run limiteds for their private jobs, speaking engagements and so on and Blair logs down half a million a year admin costs and doesn't know what they are. Firmly 'Do as I say ...' , merchants.

It's like getting into a bed of vipers, getting in with that lot.

FFS.

[Zero Liability]

I find it very hard indeed to believe any of that. To Labour the idea of being an independent freelancer is completely anathema - these are the people that perceive us as scabs and tax evaders.

Well, it cuts both ways - they're manufacturers of dependence and tax leeches, when they aren't evading taxes themselves. However, they haven't got the luxury of a clear-cut majority and I think (and hope) their Lib-dem buddies are crippled as far as the next GE goes. They are the party of champagne socialism, like tractor put it.

I don't think being left wing and pro union is at all irreconcilable with contracting.

It is, if you think employment rights that the "labourer" or "worker" can't surrender in exchange for operating with a lower tax burden, as a business. To be fair, if I were them, I'd be trying to tackle it from the vantage point of the discrepancy between NIC/PAYE, but then knowing Labour (or the Tories, or lib dems), the next step would be to hike up taxes, because "obviously" spending can't be cut (and if they do cut it, they'll start with vital services the govt has monopolised, to make the point that they "can't" be cut.)

They're irreconcilable as far as Labour's agenda goes, but then as a political party, consistency isn't going to be their strong point and "pragmatism" wins the day.

If Labour wins and subject to a number of other "if" statements sufficient to make an Excel spreadsheet blow up, they deliver on such a promise, maybe it'll lead to a marked improvement over IR35, but I think they realise it is ineffective and will instead seek other, subtler ways to get contractors to pay up what they want. Nor does it inspire any desire in me to see them win, particularly since there's no reason to think much else of what they do would be positive. It's just a lot less worse than what I thought they might have in mind, unless further details emerge to prove me wrong on that. Methinks that there's little scope to argue that IR35 is cost-efficient, effective or fair (the HoL review did not do much to vindicate it, at all), or that the boost in self-employment is largely down to people being 'forced' to go into it, so they're changing their tack, to find other ways to resolve this little problem.

They need to fight zero hours contracts without pissing off their big business friends'.

Could be that too. Not to mention that the public sector itself relies more heavily on freelancers these days.

[malvolio]

Until we all get taken in by their sincerity and progressiveness, then they introduce a new 60% CT rate for these new 'corporate vehicles'

No thanks.

Why? Seriously - 1.75 million at most, average profits around £50k each, add 40% to CT rates and they take in a whole £35m a year extra. And piss off 1.75 million voters. Not forgetting it's not about tax income per se, it's about preventing artificial avoidance.

The objective is not about taxation, it's about opportunity and lack of interference.

[Zero Liability]

Just out of curiosity, what does the 1.75m figure relate to specifically?

[jamesbrown]

Just out of curiosity, what does the 1.75m figure relate to specifically?

1.75m companies * 50k average profit * 40% additional CT = 35m p.a. additional CT.