Budget - Composite Companies Dead!

[Lucy]

Not in the document, but in the speech:-

The Government will also address the problem of MSCs escaping payment of tax and NICs due by allowing the recovery of these debts from appropriate third parties.

Third party = the contractor (if I understand that correctly)

We'll need to wait for the "Targetting Managed Service Companies" document to get the full details, but it doesn't look good for those who have used MSCs...

I had heard a rumour agencies would be liable as they were the last legal entity with their grubby hands on the dosh, ie why some agencies were refusing to deal with Actinium etc etc

[Ivor1]

and as someone else has pointed out, stepping from comp to YourCo will probably flag an IR35 investigation anyway.

Just what I need, me thinks a move back to permindom is on the cards, it just aint worth it anymore. This country is a c*** some time, I would be better treated if I were a murdering immigrant.

Oh well, Ive got the ££ but they aint getting from me easy :

[swamp]

Moving from MSC to Your Ltd should not point towards IR35, in part because MSCs will become immune from IR35.

[bobhope]

Am I missing something here or I am the only one thinking that this applying the rules retroactively like this makes the UK have more in common with a Banana republic than the 5th/6th richest country in the world?

[swamp]

Am I missing something here or I am the only one thinking that this applying the rules retroactively like this makes the UK have more in common with a Banana republic than the 5th/6th richest country in the world?

Where does it say the new rules on MSCs will be retrospective?

I can't find anything.

[Lucy]

Am I missing something here or I am the only one thinking that this applying the rules retroactively like this makes the UK have more in common with a Banana republic than the 5th/6th richest country in the world?

Umm, try 18th. Only one above France.

[sasguru]

Umm, try 18th. Only one above France.

Guess you're talking GNP?

[Lucy]

Guess you're talking GNP?

PPP

[Cowboy Bob]

Where does it say the new rules on MSCs will be retrospective?

I can't find anything.

That's from the budget in 2004 where they announced that any closed tax loopholes in the future could be backdated to December 2004.

To be honest, this targetting of composites and the fact that the tax will be backdated to 2004 has been common knowledge for a while (they even pre-announced that they were going to announce it in the last budget). Not sure I have any sympathy for anyone who has joined a composite since then...

[sasguru]

PPP

I bet if we take London separately PPP will be even worse than 19th?