The Official Budget 2016 thread

[PurpleGorilla]

True - that's one model. The agents wouldn't like it. No reoccurring revenue from a long-term contractor.

The end-clients wouldn't like it. First they'd have to have loads of small contracts with individual PSC's. Second they'd feel exposed to getting clobbered by HMRC et al for having "disguised employees" on their books.

But they won't pay the employers NI, the contractor will pay that.

[SimonMac]

We screwed yet?

[DaveB]

We screwed yet?

Not till about 12:35.

[SimonMac]

Not till about 12:35.

Right, I am gonna blow all the money I have on a nice lunch then before Gideon taxes it more

[DaveB]

True - that's one model. The agents wouldn't like it. No reoccurring revenue from a long-term contractor.

The end-clients wouldn't like it. First they'd have to have loads of small contracts with individual PSC's. Second they'd feel exposed to getting clobbered by HMRC et al for having "disguised employees" on their books.

Agents wouldn't be bothered. They'd move to a finders fee model, one off payment at the start of the contract in the same way as they do for permie placements.

In fact they might actually prefer it as they wouldn't have to run monthly/weekly invoicing and payroll so it would cut their overheads.

[SimonMac]

Prepare for DOOOOOM!!!



Source: Budget 2016 checklist: what to look out for

FTFY

[DimPrawn]

[tomtomagain]

It's also there as reserves when revenue dries up and keeps (most) freelancers off benefits when on the bench for longer periods.

I completely agree. But I don't think that's how HMRC view it.

I think they think .... If a "freelancer" bills 75k in a year they should pay the equivalent of PAYE tax on £75k in that year. Not that they should pay tax on only 50k and keep the other 25k for a rainy day.

[DimPrawn]

[tomtomagain]

The government + HMRC + media like to talk a good game about "Freelancers", flexible workforces and the "gig economy" but when it comes down to it, they don't understand it and they don't like it.