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

[jonneymendoza]

Exactly this.

The 50p rate was introduced by Labour 3 weeks before the GE. If they had really believed in a 50p rate they could have introduced it in any of the previous 13 years. Even if they hadn't believed in it but felt it was necessary to bail out the crash they could have introduced it in the previous 5 years. But they didn't.

Like it or not, Bone head is trying to balance the books and we are an easy target. The proof is in whether he just takes more tax of us, or completely destroys the industry and makes lots of us homeless.

Hi

this is my first post and have learned about this news a few days ago and shocked about it.

My question to you is that if they nuke the industry and make everyone homeless, how is that decreasing the deficit?

Wont that stagnate it even further? Wont it benefit the deficit if we continue as we are as contractors and pay the tax etc as we are now?

Yes it will take some time more to wipe the deficit but surely its quicker to wipe it with how current things are instead of making more people jobless and live on benefits?

[d000hg]

It's not going to make everyone homeless.

[ZARDOZ]

Osborne is a shyster, can't believe there are people who still fall for his crap. Here is the truth;
Osborne Running Second Highest Deficit in OECD | Guido Fawkes

A little out of date, taxpayer money for HS2 budget just rose by over a third to. Around 70 billion. Cough up guys!


As for contracting I'm getting out before April. Not going to be a sitting target for this crony friendly government.

[jonneymendoza]

It's not going to make everyone homeless.

but the deficet will take longer to pay up as people will lose there jobs and cant pay tax at all being jobless

[gisajob]

Will ignorance be our downfall?

I have spoken to three agents in my industry (infrastructure engineering) over the past week or so about these potential proposals and all three were completely oblivious. Two said they were vaguely aware of changes to how Umbrella companies can operate and the third was a bit more up to speed about the consultations that ran over the summer but was also completely unaware of the recent 30 day rumours.

On a similar note I have mentioned this to fellow contractors and their responses have ranged between "I've been doing this 20 odd years and there's always something to worry about but never happens" to "Well IR35 doesn't apply to me anyway, I'm sure I opted out...!!"

Could this kind of malaise be our eventual downfall?

Can changes like this just be announced and brought in or would there first have to be further consultations and reviews? I have seen judicial reviews mooted on the IPSE forum but I'm not too sure what that entails?

[pjt]

I have spoken to three agents in my industry (infrastructure engineering) over the past week or so about these potential proposals and all three were completely oblivious. Two said they were vaguely aware of changes to how Umbrella companies can operate and the third was a bit more up to speed about the consultations that ran over the summer but was also completely unaware of the recent 30 day rumours.

On a similar note I have mentioned this to fellow contractors and their responses have ranged between "I've been doing this 20 odd years and there's always something to worry about but never happens" to "Well IR35 doesn't apply to me anyway, I'm sure I opted out...!!"

Could this kind of malaise be our eventual downfall?

Can changes like this just be announced and brought in or would there first have to be further consultations and reviews? I have seen judicial reviews mooted on the IPSE forum but I'm not too sure what that entails?

That's a very valid point and one I think a lot of us are experiencing! Not enough of the 'large flexible workforce' actually understands or cares what HMRC are trying to implement. Maybe if they did we'd have a louder voice. A lot of people are going to get a very rude awakening this April. Though maybe that might at least wake them up and help fight mobilise some sort of fight against the IR35 changes which hopefully wont take effect till the year later.

[Pondlife]

I have spoken to three agents in my industry (infrastructure engineering) over the past week or so about these potential proposals and all three were completely oblivious.

Are they not members of APSco ? When I spoke to my agency I had an email back that evening from one of their top chaps saying they were fully aware and a link to the APSCo info.

[LondonManc]

Hi

this is my first post and have learned about this news a few days ago and shocked about it.

My question to you is that if they nuke the industry and make everyone homeless, how is that decreasing the deficit?

Wont that stagnate it even further? Wont it benefit the deficit if we continue as we are as contractors and pay the tax etc as we are now?

Yes it will take some time more to wipe the deficit but surely its quicker to wipe it with how current things are instead of making more people jobless and live on benefits?

Will you please stop trying to apply logic to the situation.

[Martin Scroatman]

Just throwing a curveball into the mix - if we're forced to go permie after 1 month how are we going to fit into the rigid pay grades operated by most big companies?

I'm not working for the same pay as a permie dev. Any scope for bonuses here?

[gisajob]

Are they not members of APSco ? When I spoke to my agency I had an email back that evening from one of their top chaps saying they were fully aware and a link to the APSCo info.

Not sure about APSco but I know at least one of the agents are members/involved with REC. I spoke to them in the summer to enquire about their response to the IR35 consultation and they told me that they were in discussions about the possibility of being able to offer insurance for clients should the outcome be the whole 'client decides SDC and opts for the safest choice by default' scenario, which would let us continue as a Ltd company and ease any nerves on the part of the client. Of course all that could be blown out of the water anyway if this 30 day limit is introduced.

As far as people getting a shock come April 2016 - you're absolutely right. I would estimate that 95% of my fellow contractors don't even know about the dividend tax, so we have no hope in mobilising people to shout out against these 'rumours'.