November Budget - Stop Public sector IR35 rules coming into the Private sector

[mudskipper]

If the budget lowers the VAT threshhold, what's to prevent contractors simply setting up a second company, or as many as it takes, to invoice through each equally throughout the year to keep the total of each below the VAT threshold?

Artificial separation of trade

https://www.gov.uk/government/public...ractice-4-1983

[AtW]

If the budget lowers the VAT threshhold, what's to prevent contractors simply setting up a second company, or as many as it takes, to invoice through each equally throughout the year to keep the total of each below the VAT threshold?

Connected companies? GAAR?

I doubt they'd put VAT threshold down.

Another pension raid more likely.

[OwlHoot]

If the budget lowers the VAT threshhold, what's to prevent contractors simply setting up a second company, or as many as it takes, to invoice through each equally throughout the year to keep the total of each below the VAT threshold?

[Addanc]

I think as an estimate just my local village would have 100+ engineering contractors. Would imagine with all the IT guys and other contractors it would be a bit of a hit for my local MP.

IPSE published a list of 90 Tory MPs who currently hold seats that contain sufficient self-employed to overturn their majorities; IPSE should be contesting this a lot more aggressively viz: publish this the list of 90 MPs on order-order.com as a follow up the previous IPSE sponsored article; make clear that full taxation (inside IR35) without full holiday and sick permanent employee equivalence will be contested in court (as a minimum it's pure discrimination). I want to see NHS/HMRC defend having locum doctors first all declared inside IRA35 then NOT.

Ultimately you are only going to kill-off IR35 by getting a statutory definition of self-employment, get rid of all the subjective bulltulip.

[poorautojobber]

Damage control is companies doing what some public sector organisations are doing to ensue their contractors are outside IR35 so they can finish off their projects.

The problem the Treasury and HMRC has is that private companies aren't public sector organisations where senior individuals can be bullied into compliance, so more and more will use the loopholes available to ensure they can get contractors.

isn't this a little easier in public sector as more roles can be defined as under direction. i.e a nurse is directed to do a task as is a doctor. But a consultant (who are going for a judicial review over this) plans their own work etc. What has been piss poor is the application by scared HR departments.

Not a chance of it being that simple in the private sector they are dreaming. The first day after this comes in every freelancer will get sent home. I'm already lining up someone for some Holiday cover never bothered before just because of the hassle.

certainly no votes from my household for a future conservative gov.

[SueEllen]

So what's the damage control if this happens? Salary sacrifice pension to the max?

Damage control is companies doing what some public sector organisations are doing to ensue their contractors are outside IR35 so they can finish off their projects.

The problem the Treasury and HMRC has is that private companies aren't public sector organisations where senior individuals can be bullied into compliance, so more and more will use the loopholes available to ensure they can get contractors.

[SeededLoaf]

So what's the damage control if this happens? Salary sacrifice pension to the max?

In an ideal contractor world we must all ask for a rate rise at the same time - which won't happen as some spud will undercut me and take the tax hit.

[AtW]

Welcome to pro-business Tory Govt!!!

[jamesbrown]

[AtW]

But invest in what? There's no point in building products in a country where most of the population have no disposable income left to spend...

There is a lot of investment in Mexico, which seems to be the role that Britain will be relegated to by them Brexiters...