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

[MPwannadecentincome]

the idea that we should get taxed less because have more risk is so dumb I don't know where to begin

I think this is right.... the risk premium is in the daily rate (except agents are creaming a lot of it off). So, if risk is taken out of the tax "equality" debate, what other reason is there for contractors to pay less tax?

T&S IMO is a legitimate business expense for Contractors where we pay to travel to the temporary assignment where our client is based provided it is less than 24 months and the next contract is not is the same vicinity.

If there are no other reasons why aren't we all rushing to volunteer to be in IR35 to be seen to be good fair tax paying citizens?

Personally, the thing I like about not being in PAYE is I can choose when to withdraw funds from Ltd Co - my daily rate is more than I need to live including the maintenance I pay my ex and kids and can pay for my bench periods. By being forced to take it all out as PAYE during a gig means my child maintenance shoots up when I am in a gig and plummets to zero when I am not - the ex is not going to like that.

[AtW]

Could your business function if you had to promise today exactly what you would spend, and earn, for the next 5 years and you had to stick to it?
Divi taxes are entirely reasonable at the current proposed levels, this is a correction we had coming. It's all the other stuff that seems absurdly punitive.

Divi taxes are totally not reasonable because they increase effective tax by 30%+ - on the other hand Borrow-To-Letters get nice 5 years tax rump up period. The other stuff is really taking the piss territory

Your business example is false analogy because customers can decide to abandon business at any time and they may NEVER come back - political parties on the other hand don't run that risk, it's either Labour or Tories so they can shaft everybody without any fear of "customers" abandoning them because where would they go???

----

Talking of travel - I think ANYBODY who has to travel more than 60 mins to job (permie or contractor) should have those reasonable costs tax free (at least on public transport). Nobody would travel that far unless it's important so penalising people who do it to earn money and pay taxes is wrong.

[d000hg]

I don't object to divi tax even though it will affect me.
I do object to the proposed T&S changes even though it will not affect me.

[EternalOptimist]

Divi taxes are totally not reasonable because they increase effective tax by 30%+. The other stuff is really taking the piss territory

Your business example is false analogy because customers can decide to abandon business at any time and they may NEVER come back - political parties on the other hand don't run that risk, it's either Labour or Tories so they can shaft everybody without any fear of "customers" abandoning them because where would they go???

you are mad if you think a legislator can cope with that minute level of 'coulda shouda wouda' and unicorn sh!te level of action.

It's always going to be a rough brush

[AtW]

I do object to the proposed T&S changes even though it will not affect me.

If smart, witty, talented and handsome contractors are forced to become permies then it might affect you ...

[Zero Liability]

Divi taxes are totally not reasonable because they increase effective tax by 30%+ - on the other hand Borrow-To-Letters get nice 5 years tax rump up period. The other stuff is really taking the piss territory

Your business example is false analogy because customers can decide to abandon business at any time and they may NEVER come back - political parties on the other hand don't run that risk, it's either Labour or Tories so they can shaft everybody without any fear of "customers" abandoning them because where would they go???

Plus any business selling goods in a blatantly fraudulent manner can be taken to court for that. With the two main parties, you'll get some smug reply that voting for any competition to them is a vote for their supposed nemesis.

[AtW]

you are mad if you think a legislator can cope with that minute level of 'coulda shouda wouda' and unicorn sh!te level of action. It's always going to be a rough
brush

But they did care about BTLers... oh wait - a bunch of MPs are also landlords!!!

[d000hg]

If smart, witty, talented and handsome contractors are forced to become permies then it might affect you ...

Less competition?

[EternalOptimist]

But they did care about BTLers... oh wait - a bunch of MPs are also landlords!!!

you know very well that I am talking about the broad middle who will bear the pain
you keep harping on about the few extremes who will get a free ride

[AtW]

Plus any business selling goods in a blatantly fraudulent manner can be taken to court for that.

Yep!

Fraud is obtaining money by deception - fits those MPs!