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

[WordIsBond]

I don't for a minute believe this comes in. Business is not going to want to put every temporary resource they access on payroll.

But even though I can run multiple projects and some are less than a month, there's no way all of them are. And guess what? I'm independent, I'm running a business, and I'm NOT going on some company's payroll just because Gideon wants to collect tax. I offer a service to other companies but I am not their employee.

It just means I'll stop making my services available to UK companies. And if he starts messing around with trying to find a way to do the equivalent with my foreign clients, I'll leave. Thanks to a very good marital choice, I not only have a great marriage, I've got options to move overseas, too.

[MrMarkyMark]

Thanks to a very good marital choice, I not only have a great marriage, I've got options to move overseas, too.

So have I and its a hell of a lot hotter than here

[vetran]

In IR35 they made the tax the workers problem, we all complained that it should be the clients problem otherwise they would bypass it / ignore it.

Now they are going to make it the clients problem in the most ham fisted way possible...

There are lots of ways to solve this problem but they pick the worst way.

[VectraMan]

I don't for a minute believe this comes in. Business is not going to want to put every temporary resource they access on payroll.

Apart from anything else it would put umbrella companies out of business even though people who work through umbrellas aren't avoiding any tax, plus an end to "agency workers".

They just need to do IR35 properly. Shouldn't be hard.

[NotAllThere]

In IR35 they made the tax the workers problem, we all complained that it should be the clients problem otherwise they would bypass it / ignore it.

Now they are going to make it the clients problem in the most ham fisted way possible...

There are lots of ways to solve this problem but they pick the worst way.

What problem? They could have just left things as they were. Far cheaper all round.

[vetran]

What problem? They could have just left things as they were. Far cheaper all round.

They saw the use of Limited to avoid tax by employers for people that should be employees(something that was most definitely happening) as wrong so made it the Employees problems this broke the contractor model but did very little for the showbiz & senior civil servants that were performing the worst abuse.

Now they are trying to do it the other way and make anything that walks like a duck go quack. This is a bit of a bummer if you are a pigeon.

Other tax authorities have made better attempts.

I have no objection to a growing small businesses paying less tax if they start providing employment.

[Darkling]

Apart from anything else it would put umbrella companies out of business even though people who work through umbrellas aren't avoiding any tax, plus an end to "agency workers".

Both the Guardian and Daily Mail articles are specifically about Personal Service Companies - let's not jump to conclusions yet.

[vetran]

Both the Guardian and Daily Mail articles are specifically about Personal Service Companies - let's not jump to conclusions yet.

As there is no legal definition of a "Personal Service Company" I would suggest that jumping to conclusions is the only way to interpret these statements.

[LisaContractorUmbrella]

Apart from anything else it would put umbrella companies out of business even though people who work through umbrellas aren't avoiding any tax, plus an end to "agency workers".

They just need to do IR35 properly. Shouldn't be hard.

All depends how it's all worded - if it's just that workers have to be paid through PAYE brollies will be OK - if it's that they have to be on client's payroll we're stuffed Could be wishful thinking on my part but I can't see HMG upsetting the business world by forcing them to take people onto their payroll when they only want them for a couple of months - especially as shedloads of contractors/freelancers work in the Public Sector. If they get rid of T&S umbrella companies will basically be tax collectors for HMRC - everything monitorable through RTI and agency reporting - we'd basically be doing their job for them.

[_V_]

Look, lets face it, the govt needs the cash, so roll over and pay it all up for good causes. Those in the public sector are living in poverty.