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

[Contreras]

Good. you know how VAT actually works then ?

I think the point was..

... and the Government will lose lots of VAT from financial services firms in particular.

Which is interesting, and I do wonder if it's even factored into their thinking. Or highlighted in any of the consultation responses?

[EternalOptimist]

OK......f**k off ya knob !

Was that ok ??

heh heh.

no.

Listen GBH,

We charge the client VAT. The client reclaims the VAT from the treasury.

so far , its a draw, yes?

but this all requires administration, managers, office space.
So its a pointless job creation scheme

unless you work there. in which case, its the best thing since sliced bread.


now , what were you saying ? I forgot

[Waldorf]

You forgot no paid sick leave, no annual leave allowance, no employer pension and no redundancy money.

These are easily covered in our rates. Many employers, especially small ones, usually only pay sick pay for a week and then it's SSP at about £70 per week.

Annual leave is included in the rates we agree.

Pension, or some form of retirement saving, is something we all do, don't we?

Redundancy is in effect the cash when you close the company.

Not all people, certainly in the private sector, have loads of benefits.

I accept that contracting is not all gain but the benefits easily outweigh the costs.

Again, all that I am pointing out is how the average man in the street, and many MP's see contractors. A contractor earning £100K per annum and paying little tax is never going to be an easy sell.

[chopper]

heh heh.

no.

Listen GBH,

We charge the client VAT. The client reclaims the VAT from the treasury.

so far , its a draw, yes?

Except financial services firms (e.g. banks) cannot reclaim the VAT from the treasury.

[MrMarkyMark]

These are easily covered in our rates. Many employers, especially small ones, usually only pay sick pay for a week and then it's SSP at about £70 per week.

Annual leave is included in the rates we agree.

Pension, or some form of retirement saving, is something we all do, don't we?

Redundancy is in effect the cash when you close the company.

Not all people, certainly in the private sector, have loads of benefits.

I accept that contracting is not all gain but the benefits easily outweigh the costs.

Again, all that I am pointing out is how the average man in the street, and many MP's see contractors. A contractor earning £100K per annum and paying little tax is never going to be an easy sell.

All well and good.

Have you been contracting at a height of a recession?
Sometimes I have only worked 3 months, in a year, I certainly didn't earn a 100K then.

The war chest was depleted to a very low level, on that occasion.
This is one of the key parts they don't get.

Except financial services firms (e.g. banks) cannot reclaim the VAT from the treasury.

[d000hg]

And at the same time, loads of permies were losing their jobs and unemployed without a significant war-chest... the "hard done by contractor" story doesn't really wash. you were still in a much better position than most.

[MrMarkyMark]

And at the same time, loads of permies were losing their jobs and unemployed without a significant war-chest... the "hard done by contractor" story doesn't really wash. you were still in a much better position than most.

Errmmm, Perms usually get some form of Redundancy?

I didn't say I wasn't in a better position, than most, its one of the reasons I went contracting, in the first place.

The way some speak on here, its like they want to roll over and take everything they are given.
Because we deserve it etc. etc.

[LondonManc]

High level figures for Gideon's cockup:
50,000 contractors on Canary Wharf
Average VAT of £100 per day
Gideon misses out on £1bn but makes £400m in other tax
No wonder the banks look after him.

[seeourbee]

Has anyone read that "letter to MP" that IPSE sent out. It's laughable, contains grammatical errors and comes across as a child crying because his toys have been taken away.

The letter is so poorly constructed from an IR35 perspective as well. Thank God I cancelled my membership, the only 'voice of the freelancer' they have is that of a crying child.

[Chuck]

"Ministers have yet to make a final decision on whether to introduce the change. They will want to see how businesses respond to the proposal at next week’s annual conference of the CBI."

In other words it's not going to happen.

So, the CBI are going to have a say in this? That organisation of massive employers with a vested interest in bringing in cheap offshore resources?

Just great, I can see that going well then.