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

[GB9]

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.

That would indicate either ftc on much lower salary but with perks, or contract outside ir35.

Put another way, if that happened then it would be a massive fail at increasing tax take.

[BlueSharp]

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.

Huh? no I'm confident i'm outside SDC already

I'm simply pointing out that the client will have to decide not only our tax status upfront but that decision is also our employment status as both are based on SDC.

[GB9]

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

Cheeky!

I'm not sure that would stick as the rules for defining inside ir35 would have changed significantly according to reports.

[BrilloPad]

Cheeky!

I'm not sure that would stick as the rules for defining inside ir35 would have changed significantly according to reports.

Why cheeky?

[GB9]

Why cheeky?

I thought it was being deliberately provocative! At least I hope so.

[BrilloPad]

I thought it was being deliberately provocative! At least I hope so.

I hope it is too.

[Zero Liability]

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?

Only if you stayed on I'd imagine.

[VectraMan]

Huh? no I'm confident i'm outside SDC already

I'm simply pointing out that the client will have to decide not only our tax status upfront but that decision is also our employment status as both are based on SDC.

That appears to have happened in one case, as far as we know. How many thousands of contractors are there working via umbrellas that aren't getting employment rights? If what you're saying is correct then that is what could well be the nail in the coffin for contracting, not these tax changes. Surely the last thing everyone here would want is employment rights because it would go along with a cut in income to permie levels.

[Unix]

As I said before it's a tick box exercise, if you are outside then business as usual.

[ChimpMaster]

Only if you stayed on I'd imagine.

Depends on the actual content of the proposed changes and the impact, but I'm putting a very serious plan in place to quit contracting and IT if its a worst-case scenario.

EDIT: and ideally to quit the UK and take the bulk of my funds with me, but that's going to take some more work.