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

[BlasterBates]

...ooh I can see this thread is going to be a monster.

[MarkT]

You've not been keeping up...

I took the morning off to do some work......

So T&S will go for ordinary employees as well as PSCs? I missed that

[Zero Liability]

...ooh I can see this thread is going to be a monster.

All part of JB's master plan.


As for the '£400m', I bet they're going to lump the dividend tax with any changes made and claim that's how they'll get to it, that is if it is not 'forgotten' about entirely, having served its purpose. It'll be interesting to see just how short of it these measures fall.

[LucidDementia]

All part of JB's master plan.


As for the £400m, I bet they're going to lump the dividend tax with any changes and claim that's how they'll get to it. It'll be interesting to see just how short of it these measures fall.

******* miles.

[hildaoblivion]

softening up the public before the attack on these tax dodgers...

Autumn Statement 2015: how a 'personal services company' (PSC) cut your income tax bill - Telegraph

[psychocandy]

Well if "More than one client" is a major signal for being out of IR35, it might be time to offer some cut price consultancy hours to other small business on a 0 hours contract basis, just provide support under the agreement as required.

Might be job done for me. I've got a mate who runs a company who I do work for on an ad hoc basis. Maybe a day every two/three months but all above board and invoiced etc.

[Darkling]

But the question has to be asked If you have no T&S claim; why would you use a brolly instead of a FTC? It's another link in the chain between you and the client that offers no benefit if T&S claims are dead.

Because you'll still be paid at contract rates. If you become an employee of the client, making them liable for your employment rights and benefits, you will have no justification to demand a higher salary then any comparably skilled permie (or, 'tempie', if you prefer).

Don't forget some of the other fun things permie/tempie employment contracts typically contain:

1. Whole time work. You shall not conduct any other business without the written consent of the company
2. IP Transfer. Any intellectual property you create, whether inside or outside of work, shall become the property of the company.

And look forward to your bi-annual appraisal...

[MarkT]

softening up the public before the attack on these tax dodgers...

Autumn Statement 2015: how a 'personal services company' (PSC) cut your income tax bill - Telegraph

I think i am example A - as will the vast majority of technical and business change contractors. Sometimes you come in as a PMO Manager/Business Change person, make the necessary changes to the organisation, and leave.

[jmo21]

Everyone worrying about the client filling in this test.

Surely clients will soon realise it is in their best interests to fill out in our favour?

It seems so close to an "employment test" they'd be mad not to.

And if a whole bunch of client co's started losing contractors who quit after a month when they get a bad result from their client, they'd certainly start to re-think their approach.

Or am I missing something?

[PurpleGorilla]

Because you'll still be paid at contract rates. If you become an employee of the client, making them liable for your employment rights and benefits, you will have no justification to demand a higher salary then any comparably skilled permie (or, 'tempie', if you prefer).

Don't forget some of the other fun things permie/tempie employment contracts typically contain:

1. Whole time work. You shall not conduct any other business without the written consent of the company
2. IP Transfer. Any intellectual property you create, whether inside or outside of work, shall become the property of the company.

And look forward to your bi-annual appraisal...

Christ I have multiple concurrent clients. This sinks my business!