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

[EternalOptimist]

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.

in return, we demand better numbering of bullet points

[Danglekt]

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

Yeah, cos IT are the only projects that matter?

IT is often part of a business project, so why would the bods who type in 1's and 0's on the project be any different to the bod redesigning processes, or running the project?

[BillHicksRIP]

I can't believe the Torys will let anything this drastic to go ahead so soon after the kicking the Chancellor got over tax credits. And they've got the bare-faced cheek to say that they're the party of small business.

[diseasex]

Yeah, cos IT are the only projects that matter?

IT is often part of a business project, so why would the bods who type in 1's and 0's on the project be any different to the bod redesigning processes, or running the project?

because It consultant can BUILD a network for local company ,but IT manager can "only" supervise projects and is dependent on larger corporation and can't really service small business?

[MrMarkyMark]

Yeah, cos IT are the only projects that matter?

It seems the nuclear industry is up in arms as well.

Not very joined up this lot, are they

[EternalOptimist]

I can't believe the Torys will let anything this drastic to go ahead so soon after the kicking the Chancellor got over tax credits. And they've got the bare-faced cheek to say that they're the party of small business.

sigh. They don't believe we are small businesses. They believe we are Friday to Monday disguised employees

[Danglekt]

because It consultant can BUILD a network for local company ,but IT manager can "only" supervise projects and is dependent on larger corporation and can't really service small business?

My point is, not every contractor works in IT.

You are right about contractors giving BAU support being different from contractors giving project support - but I say again, IT "consultants" (contractors) can absolutely work on projects which means these rules seem harsh, but NON IT contractors also exist that absolutely work on projects too (they just don't all involve sweaty palmed computer types trying to explain away yet another SQL error in "/" application...) which makes these rules seem harsh.

IT contractors are not the only people who can work on projects...

Hopefully me saying it 4 times helps?

[Zero Liability]

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...

Would be the most sensible approach IMO, assuming they don't want to kill the sector off.

[LisaContractorUmbrella]

If you want to have your say on anything coming out in the AS - can I please direct you here: https://www.thunderclap.it/projects/...stand-together

[diseasex]

My point is, not every contractor works in IT.

You are right about contractors giving BAU support being different from contractors giving project support - but I say again, IT "consultants" (contractors) can absolutely work on projects which means these rules seem harsh, but NON IT contractors also exist that absolutely work on projects too (they just don't all involve sweaty palmed computer types trying to explain away yet another SQL error in "/" application...) which makes these rules seem harsh.

IT contractors are not the only people who can work on projects...

Hopefully me saying it 4 times helps?

Well i said multiple times that there are different types of contractors and it will affect them differently