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

[DaveB]

Well, just written to my MP for the first time ever. Not expecting it to do much good as he's Labour and not really in a position to do much

[BrilloPad]

Good to know you did a lot of careful research

One does lots of research before joining CUK?

[SueEllen]

Well, just written to my MP for the first time ever. Not expecting it to do much good as he's Labour and not really in a position to do much

I hope you mentioned electricity and transport.

The idea is to make them worry about the comfort of their own lives.......

[jamesbrown]

Why I’m worried for the future of UK Plc - Telegraph

So many in business are angry and frustrated - Telegraph

[MarkT]

Interesting article - I see that anger is building about Osbourne's attack on small business, but at the end of the day, I'm starting to think that this is an idealogical attack.

1) The Tories are more the party of the very, very rich than the entrepreneur. The likes of the big four have long hated contractors as we are cheaper, yet just as good at them at a whole host of things. They will want contracting finished, we are hurting their balance sheet and the Tories will be very interested in their wants over ours any day as their profits go to the very very rich.

2) There is a general feeling I get that governments don't like people like us, strong willed, independent and not beholden to big business nor government for our lives. We don't need to work 60 hours a week, we don't need to worry about the boss, we can always find something else. That's not a situation that those in power, regardless of political hue, particularly like.

3) The most obvious point. The Tories f***ed up the tax credits issue. They need to bring in cash, fast. They may have only been looking at T&S for now, and raising dividend taxes. But now they are in a mess and must find money. The attacks in Paris and their cutting of the police and military put even more pressure on for them to find more. An easy source of this is to attack the "tax dodging" contractors, it'll bring something in short term, even if it backfires later.

We're doomed.

[Tasslehoff]

If these changes do come in, and for say sake of argument after 3 months we are forced “on payroll”, I ran some quick numbers and assuming my daily rate stays the same I would “only” be getting hit by around £200 a week more (I commute locally). When you factor in the Dividend Tax, the removal of the need for IPSE payments, QDOS insurance, accountancy etc. and (possibly) benefits of being a “permie” holidays sick etc, its looking roughly net-net for me at least

Am I being naive here?

[northernladuk]

If these changes do come in, and for say sake of argument after 3 months we are forced “on payroll”, I ran some quick numbers and assuming my daily rate stays the same I would “only” be getting hit by around £200 a week more (I commute locally). When you factor in the Dividend Tax, the removal of the need for IPSE payments, QDOS insurance, accountancy etc. and (possibly) benefits of being a “permie” holidays sick etc, its looking roughly net-net for me at least

Am I being naive here?

On Payroll... No dividends... income treated like a salary and taxed as such...

You think we would really be up in arms if it was net-net????

[MarkT]

If these changes do come in, and for say sake of argument after 3 months we are forced “on payroll”, I ran some quick numbers and assuming my daily rate stays the same I would “only” be getting hit by around £200 a week more (I commute locally). When you factor in the Dividend Tax, the removal of the need for IPSE payments, QDOS insurance, accountancy etc. and (possibly) benefits of being a “permie” holidays sick etc, its looking roughly net-net for me at least

Am I being naive here?

I doubt anyone will pay us a day rate if we go on payroll. It'll be a salary with all benefits, or a FTC.

I am happy to be pointed out as wrong, but I think the upshot is likely to be that we are all caught by IR35, but we may not lose our expenses, it's all up in the air, but it's the most likely scenario. I'd stand to lose £18k pa. But factoring in the change from 15/16 to 17/18 I'd be down nearer £30k.

I'd lose sharing my dividend with my wife, taking dividends out of NI/PAYE, not paying any 40% PAYE, about £6k more a year in dividend taxes, all my travel expenses (£750 a month).....

[Tasslehoff]

I doubt anyone will pay us a day rate if we go on payroll. It'll be a salary with all benefits, or a FTC.

I am happy to be pointed out as wrong, but I think the upshot is likely to be that we are all caught by IR35, but we may not lose our expenses, it's all up in the air, but it's the most likely scenario. I'd stand to lose £18k pa. But factoring in the change from 15/16 to 17/18 I'd be down nearer £30k.

I'd lose sharing my dividend with my wife, taking dividends out of NI/PAYE, not paying any 40% PAYE, about £6k more a year in dividend taxes, all my travel expenses (£750 a month).....

I guess that's my point, assuming my day rate stays the same.

If the model moves to a Salary based model (and it's not a rough yearly cut of my daily rate) then yes it becomes a real issue.

[DimPrawn]

If these changes do come in, and for say sake of argument after 3 months we are forced “on payroll”, I ran some quick numbers and assuming my daily rate stays the same I would “only” be getting hit by around £200 a week more (I commute locally). When you factor in the Dividend Tax, the removal of the need for IPSE payments, QDOS insurance, accountancy etc. and (possibly) benefits of being a “permie” holidays sick etc, its looking roughly net-net for me at least

Am I being naive here?

Very much so. It will be "From next month you are on our new starter salary of £25K p.a., enjoy!"