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

[MrMarkyMark]

I think that's such a sweeping comment it ceases to be relevant. Not all businesses can or want to get involved with offshore companies and those that do still need wiggle room. All debatable but I don't agree with the all encompassing comment you made.

You will always require expertise, this side of the water, to manage offshore, perform certain tasks etc.

At Client co, they have a ratio, with regards to how many, offshore = 1 LDN based contractor.
I believe its 4:1.
They use plenty of offshore resources, but I don't think that everyone's role could be offshored.

[_V_]

I can see where this will go. The 1 month will be rejected by big businesses and pressure groups and it will be implemented at 6 months.

So, after six months you either have to move to a different client or go on a payroll (client or brolly). The upside being no such thing as IR35. If you don't go on the payroll, HMRC will chase the client for the tax difference.

That's where I see this going.

[MrMarkyMark]

I can see where this will go. The 1 month will be rejected by big businesses and pressure groups and it will be implemented at 6 months.

So, after six months you either have to move to a different client or go on a payroll (client or brolly). The upside being no such thing as IR35. If you don't go on the payroll, HMRC will chase the client for the tax difference.

That's where I see this going.

As I said earlier, in this thread, that very approach is not working in Australia.
Projects are just not getting finished, as contractors bail after 6 months.

Could work well for true specialist, however and open the doors to more substitutions being possible.

[The Spartan]

Quite hilarious when you think about it, have you ever known a government contract to last just a month? Or even 6 months at that.

I know a lot has been said about being self employed and that companies won't deal with self-employed consultants but I'd be tempted to give that a shot rather than be forced onto PAYE for the remaining value of the contract.

[northernladuk]

not all business want cheap workforce too and would rather pay premium for quality, have a person on site, and discuss with him stuff face to face...

Absolutely. This should still be very worrying for a large number of contractors that aren't specialists in their area and only have a couple of years skills behind them though. They definitely are in danger of being ousted. I've definitely had my eyes opened recently with the resourcing at my client and nearly all of them we rejected were average permies at best. I hope they realise their situation and take suitable action. BIDI.

[ChimpMaster]

Quite hilarious when you think about it, have you ever known a government contract to last just a month? Or even 6 months at that.

I know a lot has been said about being self employed and that companies won't deal with self-employed consultants but I'd be tempted to give that a shot rather than be forced onto PAYE for the remaining value of the contract.

This would be a great basis for formulating the argument against the 1 month limit... or even 6 months!

[MrMarkyMark]

Absolutely. This should still be very worrying for a large number of contractors that aren't specialists in their area and only have a couple of years skills behind them though. They definitely are in danger of being ousted. I've definitely had my eyes opened recently with the resourcing at my client and nearly all of them we rejected were average permies at best. I hope they realise their situation and take suitable action. BIDI.

Its not only them, but, I totally agree, with the lack of quality, in some instances.

There are plenty of people who are just standard HR bods, yet are contractors.
I believe its these people, also, that are one of the core issues.

[ChimpMaster]

I get the feeling we're missing the bigger picture here.

What with all the other restrictions and additional taxation that the government is forcing upon contractors and Ltd Cos, it would well be that this article was deliberately leaked simply to distract everyone from this summer's budget.

[d000hg]

You'd think agencies would be putting big pressure on the government since their whole business model is liable to be affected quite substantially.

Maybe the idea of us contractors forming small consultancies is finally going to be worthwhile. I'll be the C++ guy, I need a Java guy, a C# guy and a database guy.

[MicrosoftBob]

Quite hilarious when you think about it, have you ever known a government contract to last just a month? Or even 6 months at that.

I know a lot has been said about being self employed and that companies won't deal with self-employed consultants but I'd be tempted to give that a shot rather than be forced onto PAYE for the remaining value of the contract.

I've done over five years on a 3 month contract, public sector work is a joke