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

[Unix]

"Ministers have yet to make a final decision on whether to introduce the change. They will want to see how businesses respond to the proposal at next week’s annual conference of the CBI."

In other words it's not going to happen.

[chopper]

Interesting take on recent developments w/r to the IR35 forum here.

This bit had me thinking

They <snip> have made decisions around an online digital service apparently to ‘help IR35 customers work out whether the rules apply to them.’

No doubt they'll hire contractors to develop said online digital service?

[EternalOptimist]

This bit had me thinking

No doubt they'll hire contractors to develop said online digital service?

Have you never seen them filums about 'the mob'

where they make you dig yer own grave?

[GB9]

Worst case scenario (as I see it anyway): clients expected to put contractors on payroll resulting in clients using it as an excuse for lots of FTCs. However, I see this as unlikely as standard of applicants will fall dramatically and the Government will lose lots of VAT from financial services firms in particular.

Second worse case: employed consultant or whatever other tulipe they want to call it. VAT still gets paid, agencies make more cash, still a shortage of good candidates. More likely than case one as the government still gets VAT and I can see some of the worst agencies being keen on it.

Third worse case: client / agency decides if we are within IR35 or not / fixed time period before being inside IR35. Neither would be the end of the world as long as you are on a reasonable day rate. Yes, we would pay more tax, however, we would still be independent and paying more tax on a decent day rate is better than scenarios one and two (IMO).

There are others that combine the above.

Cases one and two would probably see me quit contracting as I have little or no intention of acting as someone else's chimpanzee, option three and I would carry on.

I have tried several hundred 'plan B's and have failed at them all. Too young to retire too.

[EternalOptimist]

oh my. all this talk of the government losing VAT is doing me swede in.
are these contributers actually contractors ???

[GB9]

oh my. all this talk of the government losing VAT is doing me swede in.
are these contributers actually contractors ???

Let me have a look at myself a minute.......yes, definitely a hardened contractor. More so than most.

[jamesbrown]

I do actually think that this one is so damaging that we could get their support. I'm intending to write back to mine to ask for his personal view on it.

I'm always skeptical, especially where the current HMT is involved, but it doesn't hurt to try, so I've just sent a letter to my local Tory MP.

[TestMangler]

Let me have a look at myself a minute.......yes, definitely a hardened contractor. More so than most.

Good. you know how VAT actually works then ?

[EternalOptimist]

Good. you know how VAT actually works then ?

no point both of us. you answer him

[TestMangler]

no point both of us. you answer him

OK......f**k off ya knob !

Was that ok ??