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

[LondonManc]

Well if that does happen we are screwed. Ftc at half contract rate with no real benefits. Day rate through umbrella I could cope with.

As mentioned though, client has c150 day rate contractors and they aren't going on the payroll.

Why would FTC rate be dropped?

What's more interesting is this and it's a massive ray of hope. What will happen to the agency commission model? It's in agencies' interests to keep us outside of IR35 and keep us earning commission for them. The biggest money-lovers of all in our economic foodchain will want to preserve their supply. The easiest way for them to do this is to manage clients and candidates to keep all their contracts that should be outside IR35, outside of IR35. This means that they'll be absolutely scouring the new rules and advising clients and candidates of the best way to operate in the future (e.g. a verbal agreement to no right of substitution or taking two similar contractors on together who have the right of co-substitution).

That thought alone has cheered me up before I go and face the commuter carnage that is Euston station on a Friday evening.

[GB9]

Why would FTC rate be dropped?

That thought alone has cheered me up before I go and face the commuter carnage that is Euston station on a Friday evening.

All the ftcs here are at the same rate as permies. Worst of either world.

Good luck with the trip home. I always tried to get the 16:05 home on a Friday.

[Andy2]

Just talking to my partner who heads up an IT arm of a managed services firm ad she said that if these rules came in, they just wouldn't bother using UK contractors, they would outsource more and more of it offshore.

Maybe that's Osbornes's big plan.
UK IT market fully controlled by big consultancies.

[MrO666]

Maybe that's Osbornes's big plan.
UK IT market fully controlled by big consultancies.

Yeah, but big consultancies who ensure that all profit is not even generated onshore, so hence can't even be hit with the new rules around that.

If a contractor is based in India, then HMRC cannot argue that the work was carried out in the UK.

[meridian]

Why would FTC rate be dropped?

What's more interesting is this and it's a massive ray of hope. What will happen to the agency commission model? It's in agencies' interests to keep us outside of IR35 and keep us earning commission for them. The biggest money-lovers of all in our economic foodchain will want to preserve their supply. The easiest way for them to do this is to manage clients and candidates to keep all their contracts that should be outside IR35, outside of IR35. This means that they'll be absolutely scouring the new rules and advising clients and candidates of the best way to operate in the future (e.g. a verbal agreement to no right of substitution or taking two similar contractors on together who have the right of co-substitution).

That thought alone has cheered me up before I go and face the commuter carnage that is Euston station on a Friday evening.

What, you mean actually act like they are the agent of the client and protect their client's interests, look into and confirm their working practices prior to contract signing, and earn their daily cut by constantly monitoring to ensure the SD&C rules are followed? Some of them might be okay, but the newby recruiter I spoke to the other day looking for a SAP HR person and wondered what HCM stood for might struggle a bit.

It might actually work out well. Decent agencies stay in business, bum-on-seat contractors on lower FTCs, and a reduced pool of contractors pushing rates upwards.....

[Andy2]

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

[BolshieBastard]

And to think, pcg \ ipse said the Government was on their side! Oops!

[SueEllen]

And to think, pcg \ ipse said the Government was on their side! Oops!

To be fair we have a main opposition party who refused to answer any of the pcg/ipse questions about contracting and self-employment in the last General Election.

Even the Greens, who were more left wing than Labour at the time, could make something up for pcg/ipse to print.

[northernladuk]

I hope we can get a sticky up before the raft of idiots that have no idea about being a contractor start asking 'Which ones do I tick to be outside IR35'. Sadly it appears despite their refusal to try and understand what they do they will also be able to tick the right boxes and jump through whatever hoops will be required to carry on as normal to a greater extent. Shame.

Be interesting if this time at a client starts from April or is backdated. Could be like musical chairs throughout April if it is LOL.

[PurpleGorilla]

George - zero corporation tax - Osborne: