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

[d000hg]

They would be foolish to allow people to opt out of paying monthly far too many would forget to pay. I suggest they create a PAYE lite that covers a contractors needs.

Do lots of contractors currently forget to pay CT/SATR (actually, maybe they do!)?

[MicrosoftBob]

If they would implement stupid law like this (which sounds just stupid) I would simply register offshore and claim to be larger than I am or claim to be another another india bob company (which is allowed!) to which works is being outsourced. Or do contracts in norway or in dubai. Either way they wouldnt see a penny, and instead making 400m they would get -400m

I wonder how close you could be offshore to ICT yourself, would the Isle Of Man do ?

[EternalOptimist]

If they would implement stupid law like this (which sounds just stupid) I would simply register offshore and claim to be larger than I am or claim to be another another india bob company (which is allowed!) to which works is being outsourced. Or do contracts in norway or in dubai. Either way they wouldnt see a penny, and instead making 400m they would get -400m

OMFG.

Look. It's been well established, for donkeys, that contractors become contractors not for the money, but to escape the office politics and unnecessary aggro.

you are suggesting a massive increase in aggro. I don't think this is a flier.

[diseasex]

OMFG.

Look. It's been well established, for donkeys, that contractors become contractors not for the money, but to escape the office politics and unnecessary aggro.

you are suggesting a massive increase in aggro. I don't think this is a flier.

Yep I'm saying guardian and daily mail are stupid and it's not going to happen

[EternalOptimist]

Yep I'm saying guardian and daily mail are stupid and it's not going to happen

in that case, your non-solution to a non-problem is just about ok

[diseasex]

in that case, your non-solution to a non-problem is just about ok

If my non-solution to this non-problem wouldn't work I'm sure we would find other yep-solutions that would work. In the end I consider myself a company and I intend to expand / hire and what not. So to hammer me with tax they would have to tax every other company in the uk
Just saying

[EternalOptimist]

If my non-solution to this non-problem wouldn't work I'm sure we would find other yep-solutions that would work. In the end I consider myself a company and I intend to expand / hire and what not. So to hammer me with tax they would have to tax every other company in the uk
Just saying

good luck to you. now stop whining

[meridian]

in that case, your non-solution to a non-problem is just about ok

It's not necessarily a non-solution for some of us. I'm a non-domicile anyway (technically, though I don't currently pay to be one and declare everything as a normal tax resident) so a more aggressive approach to tax minimisation will be looking attractive, depending on what the announcement contains.

[GB9]

Net - Nothing - because surely all ClientCo's will be VAT registered, so will claim it back anyway.

There will be a few that can't claim it back - but this will be offset by no longer having so many contractors on the flat rate scheme, for which most contractors tend to make a small gain in gross receipts.

The vast majority of banks cannot reclaim VAT, and as they are key users of contractors, that's a whole world of VAT going missing. And as VAT is chargeable on turnover regardless of profit.......

[NotAllThere]

...
Look. It's been well established, for donkeys, that contractors become contractors not for the money, but to escape the office politics and unnecessary aggro...

Erm... I do it for the money (Though not for tax benefit, as I don't get any - rather the opposite). The lack of office politics, aggro etc. is merely an added benefit.