With the dividend taxation will you continue contracting?

[mudskipper]

For me, in current gig, expenses not an issue. But I see this as a much bigger threat to the way of working than the divvy tax. That and the promised IR35 clarification.

[Unix]

Yep just up my rate. Clients or agent will absorb it

[Alias]

And with it a drop in rate?

I doubt too many contractors would agree to that

No on top of normal or increased rate...

[Scruff]

The Clash had the right idea... Going Underground 💩

[vetran]

For me, in current gig, expenses not an issue. But I see this as a much bigger threat to the way of working than the divvy tax. That and the promised IR35 clarification.

+1

tinkering with dividends to make it the same tax as PAYE near enough is fine if you really are a disguised employee, as ms says its the T&S + IR35 that is the killer.

hope they replace IR35 with more sensible and above all clearer regulation. If you can't do a tick list and decide which side you are on then its no good that is the point IPSE should make loud & clear.

They need to find lots of contractors turned businesses and tell their story. In light of IR35 & ICT what will the new story be and will it take as much tax?

There are a few on this forum and I know half a dozen from other sources that now have employees and products.

Contractors can become small businesses and even buy sofas one day.

Also how much tax isn't paid ? how much do they get through vat?

[vwdan]

I'm not desperate to get out (Actually, I wasn't trying at all to get out) but I've wound up front running for 2 permie jobs over the last couple of weeks. If I get an offer then the budget decision will definitely make it easier.

That said, I still love contracting but the government definitely hate us and I'm just not sure how much I can be arsed with the fight.

[vwdan]

Yep just up my rate. Clients or agent will absorb it

If it were that easy, you'd be charging that rate already - unless you don't like money? Market forces may help going forwards, but I'd not be counting on it.

[_V_]

If it were that easy, you'd be charging that rate already - unless you don't like money? Market forces may help going forwards, but I'd not be counting on it.

Market forces mean IT is on par with shelf stacking.

Dedicated ASP.NET Developers, PHP Web Development, Programmers & Website Designers

[Antman]

Bit too much over-reaction to this methinks.

Devil's in the detail but isn't T&S going to be removed for brollies only? Increased tax - meh, still better than dealing with office politics, 360 reviews etc.

Not great but not the end of the world yet.

[DaveB]

Maybe I'm missing something here, I've not read the consultation, but for a contractor outside of IR35 can you not still pay expenses out of the company / reimburse as needed. It's just not deductible against CT? In effect the 2 year rule ceases to exist.