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

[AtW]

Still when Cameron says we are lowering corporation tax people jump. However, it will only help the big boys. Little guys will get screwed over.

Yep.

Tories are truly scum.

[Tentpole]

Anybody not an IT contractor on this site?

Hi there fellow non-IT people. As a freelance electronics engineer / project manager, all I see is a load of disgruntled IT contractors on this board. It was, so I understand, big IT-based businesses pulling the Permie on Friday subbie on Monday trick, which triggered IR35 in the first place. Thanks for that, by the way.

How does this affect ASIC, embedded software, hardware, PCB, RF, mechanical engineers, industrial designers, project managers and all the rest out there? And all the other non-technical service freelancers? Are we getting trampled in the messy brawl between HMT/HMRC and IT-based business or are we no different? Many of the issues discussed here are irrelevant to my business and my clients - ICT for example, I had to look that up. I know these changes would discourage my clients from hiring freelance engineers and it would probably be impossible for me to maintain acceptable profits and a good risk/reward balance. I am very happy being self-employed, much better than the multiple redundancies I experienced as a permie, and I do not want to be forced out due to an ill-conceived tax grab whose negatives will far outweigh the positives.

Or is this site just a den of IT moaners and I'm wasting my time?

[jamesbrown]

Interesting article (and timing) on the home page of the FT.com ("Whitehall spends more than £1bn on contractors").

[NotAllThere]

Anybody not an IT contractor on this site?...

There are a few.

You understand incorrectly. It was the government that used fri-mon enforced on the low paid (like cleaners) as an excuse for bringing IR35 on higher paid contractors. When IR35 was first being discussed, contract engineers didn't see it as an IT thing - it very much was their fight as well.

The brawl is not between IT and HMRC. It is between knowledge based contractors (of which the vast majority are in IT) and HMRC. It's HMRC's long standing wish to ensure everyone is employed by a third party, under PAYE.

[Contreras]

Anybody not an IT contractor on this site?

Discounting "ASIC, embedded software, hardware, PCB, RF, mechanical engineers, industrial designers, project managers" from the definition of IT then yes quite a few and I am one of them. Unfortunately many non-tech persons know no better than to lump all these under the IT banner and some of us are resigned to accept it.

Or is this site just a den of IT moaners and I'm wasting my time?

Nice way to introduce yourself and a fast-track to people's ignore lists.

[GB9]

I actually wouldnt have a problem with a limit of 52 weeks or less. The majority of projects and other IT work that Ive been involved with have rarely gone over 52 weeks.One financial institution had a 52 week on site limit but the project last 14 months so they had to get internal dispensation to keep the contractors on.

Far too many contractors, and clients it must be said, think in terms of staying in situ for 3, 4 or more years. You're clearly integrated into the client organisation if you're on site for more than 12 months despite what some on here may say.

Except in a recent legal judgement the tribunal found it had taken 4.5 years for the contractor to become integrated.

What is your statement based upon? It seems to be that it is purely because you haven't worked on a large project before.

[centurian]

Except in a recent legal judgement the tribunal found it had taken 4.5 years for the contractor to become integrated.

What is your statement based upon? It seems to be that it is purely because you haven't worked on a large project before.

According to case law, you're probably right. In that judgement, it was due to an event that occurred 4.5 years in. That event could have happened sooner, or later than 4.5 years, or never.

I think BBs point is that most contractors tend to become integrated as a matter of course after about a year, even if they might still be able to legally argue they are not.

[Zero Liability]

Meanwhile...

HMRC to merge 170 offices into 13 hubs as part of major overhaul - Telegraph

Anyone want to chip in with a few quid for these poor disgruntled soon to be ex employees?



Thought not.

By the sound of that article, it looks like they'll be needing some 'specialist' expertise, no doubt off payroll.

[DaveB]

Meanwhile...

HMRC to merge 170 offices into 13 hubs as part of major overhaul - Telegraph

Anyone want to chip in with a few quid for these poor disgruntled soon to be ex employees?



Thought not.

By the sound of that article, it looks like they'll be needing some 'specialist' expertise, no doubt off payroll.

They already do, I've had a few calls about jobs with them as part of the reorgansiation. 3 months with a good chance of extenstion.

[BolshieBastard]

Maybe you should've read my whole post before making a fool of yourself; I argued why those options would not be practical for the majority of us.

The one making 'a fool of yourself' isnt me. Perhaps you should attempt to write a literate post then your obvious gaffe's wouldnt make you look the fool.