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

[smalldog]

hmm this would be an interesting business case. Get all the current contractors on PAYE = X tax receipts. They then have to balance that with all the VAT, Corp Tax for not only the contractors Ltd's but also all the accountants Ltd's, Contract service companies, umbrellas etc. = Y Tax receipts.

Bloody complex and maybe Im giving them too much credit for bothering to balance X with Y to see if HMG would be better off.

[Lightwave]

hmm this would be an interesting business case. Get all the current contractors on PAYE = X tax receipts. They then have to balance that with all the VAT, Corp Tax for not only the contractors Ltd's but also all the accountants Ltd's, Contract service companies, umbrellas etc. = Y Tax receipts.

Bloody complex and maybe Im giving them too much credit for bothering to balance X with Y to see if HMG would be better off.

For a start the VAT mostly cancels, as my client will claim it as input tax.
On PAYE most would be paying a lot more NI, if we are cheaper as permies then the savings will mean our clients pay the corp tax we currently pay.

The only thing to raise is genuine cases of work which will no longer be done in the UK, or enabling work that we do which makes UK companies more profitable.
For instance my clients are manufacturers who actually export stuff.
Making the UK (even) less competitive at manufacturing is not good.

[neil99]

Graundiad - seriously scary article

Crackdown on personal service companies could raise £400m in tax | Politics | The Guardian

"Amid fears that business will complain of fresh regulations, the government is proposing that a consultant using a personal service company would be obliged to move on to the payroll if they work for a business for more than a month. "

Paid leave? Sick pay? Pension contributions. Employment protection ? WTF does 'on the payroll' mean ?

[neil99]

Grauniad - seriously scary article

Crackdown on personal service companies could raise £400m in tax | Politics | The Guardian

"Amid fears that business will complain of fresh regulations, the government is proposing that a consultant using a personal service company would be obliged to move on to the payroll if they work for a business for more than a month. "

Paid leave? Sick pay? Pension contributions. Employment protection ? WTF does 'on the payroll' mean ?

[northernladuk]

Congrats, you win the worst spelling fail in a title and something like the 4th KUATB on this topic.

[TheFaQQer]

http://forums.contractoruk.com/gener...-400m-tax.html

[smalldog]

For a start the VAT mostly cancels, as my client will claim it as input tax.
On PAYE most would be paying a lot more NI, if we are cheaper as permies then the savings will mean our clients pay the corp tax we currently pay.

The only thing to raise is genuine cases of work which will no longer be done in the UK, or enabling work that we do which makes UK companies more profitable.
For instance my clients are manufacturers who actually export stuff.
Making the UK (even) less competitive at manufacturing is not good.

reinforcing my point, lots of dynamics at play. Its not clear cut case.

[TheFaQQer]

No one actually thinks that they are going to end up on client co's headcount or actually get any benefits on top of their current rates, do they?

If it comes to pass, then that would certainly be a nuclear option.

[neil99]

Congrats, you win the worst spelling fail in a title and something like the 4th KUATB on this topic.

You should get out a bit more, and take a copy of Private Eye with you.

[Unix]

Anyone who thinks this will happen should not be working with sharp objects or any object, padded cell is needed.