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

[Pherlopolus]

Well if "More than one client" is a major signal for being out of IR35, it might be time to offer some cut price consultancy hours to other small business on a 0 hours contract basis, just provide support under the agreement as required.

[ChimpMaster]

Ummmm what would they do to contracts that we are currently running?

What if you're in a long term contract already (having taken steps to be out of SDC / IR35 as it is today) - would you be subject to the tax-rape on all of your previous earnings in that contract, if you fail the test?

[DimPrawn]

Ummmm what would they do to contracts that we are currently running?

What if you're in a long term contract already (having taken steps to be out of SDC / IR35 as it is today) - would you be subject to the tax-rape on all of your previous earnings in that contract, if you fail the test?

I'd guess it's going to be retrospective, so yes. Hope you have lots of cash sloshing around.....

[Tasslehoff]

Suppose the only upside is my IPSE bill will reduce to 0.

[Pherlopolus]

And what if you are deemed as outside of IR35 due to multiple clients at time of engagement, but for whatever reason you choose to concentrate on one of them, or your other work dries up?

More madness...

[BlueSharp]

You may well be correct when it gets tested although I don't think that is the government's intention as it doesn't want us as employees, just the tax.

I know current client doesn't want resource on the payroll, ftc or otherwise.

It will be an interesting time but if I'm going to be taxed as an employee because the client admits to me being under SDC you can be dam sure I will be looking for the perks as well. The lawyers will be over this like a rash as I believe (but will need to check) they can claim costs for no-win-no fee arrangements for Employment Tribunals if they win.

Tech contractor secures full employment rights :: Contractor UK

Key extract:

" Andrew Tilson, was directed, supervised, controlled and "absorbed" by his 'client' Alstom Transport."

"To reduce the risk of a heftier bill for staff costs, BFCA said clients and recruiters need to accept that they either provide working conditions that are of a contract nature to contractors, or hire employees."

Interesting times indeed.

[Tasslehoff]

It will be an interesting time but if I'm going to be taxed as an employee because the client admits to me being under SDC you can be dam sure I will be looking for the perks as well. The lawyers will be over this like a rash as I believe (but will need to check) they can claim costs for no-win-no fee arrangements for Employment Tribunals if they win.

Tech contractor secures full employment rights :: Contractor UK

Key extract:

" Andrew Tilson, was directed, supervised, controlled and "absorbed" by his 'client' Alstom Transport."

"To reduce the risk of a heftier bill for staff costs, BFCA said clients and recruiters need to accept that they either provide working conditions that are of a contract nature to contractors, or hire employees."



Interesting times indeed.

Exactly, can't have your Cake and eat it!

[DimPrawn]

Exactly, can't have your Cake and eat it!

HMR&C can and do.

[VectraMan]

It will be an interesting time but if I'm going to be taxed as an employee because the client admits to me being under SDC you can be dam sure I will be looking for the perks as well.

You'll be looking to be a permie with less income?

I'll be looking to earn more due to not having the perks and redundancy etc. Like now.

[d000hg]

And what if you are deemed as outside of IR35 due to multiple clients at time of engagement, but for whatever reason you choose to concentrate on one of them, or your other work dries up?

More madness...

This sounds like an edge case affecting only a small minority of contractors. Perhaps the tests will be done only once per contract and then you're fine, or maybe it will form some sort of annual review.