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

[TestMangler]

How could that work? Loads of genuine companies have 1 main client. What happens to them?

Do you think whatever this turns out to be will be drafted with being workable in mind ?????

[The Spartan]

You're right about one thing though - I've also thought about when I quit IT, to keep the funds in the Ltd and re-brand the company as a Property development company, or something like that, and then use the funds to grow that new business.

Now that sounds like a superb idea, are there any problems with doing this?

[Tasslehoff]

So the death of contracting was greatly exaggerated?

All of the contracts I have so far have been come in, built a thing, finished and went to my next contract. With very little direction.

I am not a disguised employee and I hope the test can reflect that.

[GB9]

But seriously, clients will not pay contractors a higher rate and they won't care what your personal tax situation is. And the likelihood is that cheaper contractors/consultants/offshore teams will pick up the slack.

It depends how valuable you are to them.

They may well be the ones defining your tax status.

I would want to know in advance how the client reviewed a role from an ir35 perspective so I could gauge the rate accordingly.

And think if all those lively contracts that will need to be re-wrirren.

[LucidDementia]

It's a market.
It will adjust.

[pjt]

It's a market.
It will die.

FTFY

[d000hg]

It wasn't a very valuable market in that case.

[LucidDementia]

The market may well spit out the disguised overpaid permies, but I'm fine with that, in fact I think it's long overdue.

Consultants who actually consult won't be going anywhere. Clients, you know, consult us. That requirement won't vanish no matter what inane codswallop Osbourne dreams up.

[Andy2]

The market may well spit out the disguised overpaid permies, but I'm fine with that, in fact I think it's long overdue.

Consultants who actually consult won't be going anywhere. Clients, you know, consult us. That requirement won't vanish no matter what inane codswallop Osbourne dreams up.

so you are ok with one month "consulting" ?

[LucidDementia]

so you are ok with one month "consulting" ?

I'll be OK come what may.
I'll decide what I need to do personally once we hear from the horse's mouth.