Crackdown on personal service companies could raise £400m in tax

[ShandyDrinker]

I think the government and HMRC would be letting themselves down if they didn't work out some way of making this change retrospective.

What are you trying to do... give them ideas!

[ShandyDrinker]

That makes two of us - I'm terrified, no bones about it, if this idiotic scheme is what they want, they'll get it and it'll be hugely popular

+1

[pjt]

I think the government and HMRC would be letting themselves down if they didn't work out some way of making this change retrospective.

[d000hg]

Any idea what would happen to pre-existing contracts?

[The Spartan]

Any idea what would happen to pre-existing contracts?

A very good question as I've been in this contract since January and have been extending till July, I need to know when to hit the eject button.

[Chutley]

There will always be a workaround. The gov and HMRC never think things through properly and there will be much brighter individuals who find the solutions.

In simple terms, it is designed to eliminate the one-man-band Ltd Company contractors (like me). It will also capture the big earning individuals who cannot be replaced with a substitute (Fiona Bruce cannot send in a replacement) and work somewhere for protracted periods.

So what about the one-man band PMs? Surely if 2 or 3 Project managers get together and form a Ltd company, then it is no longer 'pseudo-employment'. The client wants a project manager with a skill-set - the new Ltd company can send in the client's choice - but with stipulation that substitute can also be used. The 3 PM directors can still make their salaries and dividends meet their needs, and the Government's rules are met...

I'm sure that there will be other solutions. I know that I will not be going permanent for anybody - would rather run a market stall than have a company own my soul again and make me work an extra 20 hours a week over my paid 40.

[MarkT]

I need to know when to hit the eject button.

Now there's a good point, say this comes in for April 2016. Does that mean every single contractor working through a Ltd will bail on April 30th and start looking for another 1 month gig if they don't want to become perm, or aren't offered it?

How many projects would be cancelled?! There'd be such a rush to FTC, perm work or even just to use an umbrella, there's no thoughts around the tax we've already paid into SA for next year and the vast amounts coming back as rebates!

I'm very worried about Nov 25th, but in all seriousness, I can't see how it could possibly work, but the main body that can stop it, are the CBI and big businesses who will lose their flexible workforce, anyone any contacts?

[MicrosoftBob]

I'm very worried about Nov 25th, but in all seriousness, I can't see how it could possibly work, but the main body that can stop it, are the CBI and big businesses who will lose their flexible workforce, anyone any contacts?

I doubt big business cares whether the workforce is flexible or not as long as it's cheap

If we don't do contracts, there are plenty of ICTs who will

Why should big business care about us ?

[northernladuk]

I doubt big business cares whether the workforce is flexible or not as long as it's cheap

If we don't do contracts, there are plenty of ICTs who will

Why should big business care about us ?

I think that's such a sweeping comment it ceases to be relevant. Not all businesses can or want to get involved with offshore companies and those that do still need wiggle room. All debatable but I don't agree with the all encompassing comment you made.

[diseasex]

I think that's such a sweeping comment it ceases to be relevant. Not all businesses can or want to get involved with offshore companies and those that do still need wiggle room. All debatable but I don't agree with the all encompassing comment you made.

not all business want cheap workforce too and would rather pay premium for quality, have a person on site, and discuss with him stuff face to face...