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

[Gumbo Robot]

well if they'd force me into PAYE then i wouldn't take it and do something else. So somewhat doesn't concern some of us indeed..

I don't think they will have capability to hit LTD consultants - they tried that with IR35 and failed. I strongly believe at this point its all about self-employed and some managers etc, not IT LTD consultancies

You been living under a stone?

[diseasex]

You been living under a stone?

Just saying - IT consultants have a choice, and wouldn't take payroll gig, managers don't, because they can't be productive outside of coroporation

[diseasex]

I wonder if someone might enlighten me about that last post.

I seem to be suffering from cognitive dissonance.

You don't need to understand and I won't enlighten you. Even better.

[Jog On]

Will the law be able to differentiate between some NHS manager who's incorporated and some IT bod who's incorporated?

I think not. And I'm amazed that you think so.

If they got end client to determine the status it could be quite easy if the division was between BAU and temporary project resource. The qualifier could be "Does this worker get paid out of regular BAU budget or temporary project budget?"

Then filter it down by how long said project is estimated to last, then put in extra filters for if temporary project resource bod decides to accept extra work after project ends...

IMO it's BAU permatractors who are causing all of this - especially the civil service ones and the BBC presenters.

I can't believe that Hector/Gideon can really be so clueless and short sighted as to really think the idea in OP has any legs whatsoever.

They are clearly extremely desperate to whack contractors as hard as possible without having to change any tax laws that might affect their big corporate masters...

On the back of the T&S and dividend changes - this doesn't make any sense, are they really flailing around like headless chickens trying to fix the deficit without collecting any tax from big business?

Very ham fisted if you ask me...

[EternalOptimist]

I wonder if someone might enlighten me about that last post.

I seem to be suffering from cognitive dissonance.

he means that some people have more transferable skills than others and some people are completely divorced from relying on local knowledge to do their job.

and he hopes he is one of them

[MrMarkyMark]

Just saying - IT consultants have a choice, and wouldn't take payroll gig, managers don't, because they can't be productive outside of coroporation

What about Test Managers or Program Managers?

Can work in many industries, often project based roles, no D&C etc. etc.

[seeourbee]

On the back of the T&S and dividend changes - this doesn't make any sense, are they really flailing around like headless chickens trying to fix the deficit without collecting any tax from big business?

Directors Tax anyone ?!!

[EternalOptimist]

tax on dividends for company officers

[diseasex]

he means that some people have more transferable skills than others and some people are completely divorced from relying on local knowledge to do their job.

and he hopes he is one of them

this.
So some of us will stay LTD (entrepreneurs) , some will go perm (self employed) , some will take temporary payroll gig (managers), some will retire (some of you with assets).At least that's what HMRC is hoping for. And I'm hoping/planning to remain LTD

[vetran]

The End client will decide whatever is easiest depending on their situation.

If you have value outside the contract they have with you then they will want to own you as an employee. Just try inventing the next mousetrap and making millions while on contract guess who will try to get a slice.

If you want to leave they will want to remind you of your 24 month notice period. Vice versa when they want shot of you try getting paid your notice.

When they think they might have to give you employment rights or pay extra tax look how fast they drop you in it.

As before they need a points based system that can be completed based on facts.
They also need to decide what they actually are after.
I would imagine they want to :
1.limit travel expenses slightly. I suggest limit that to 6 months single contract for us & other consultancies.
2. Limit other expenses slightly - I would suggest lying down guidelines for OMBs they do for child minders.
3. Limit risk of tax not being paid, I suspect if offered a monthly payment schedule online most one man bands would be ok with that. Similar could be done with Vat and extended to all organisions. Stories of companies going bust owing 12 months of Vat & tax need to stop.
4. Avoid dividend abuse. They have minimum salaries for ICTs compare those with consultants paying minimum wage & dividends compare them and look for abuse.
4. Employer NI seems irrelevant now doesn't it.