Bad news for contractors

[cosmic]

Looks like private sectors is well in sights for this budget

Hammond plans tax crackdown on 'synthetic self-employed' - BBC News

"The Treasury is finalising plans to overhaul tax rules which allow self-employed people to avoid paying national insurance contributions.

The move will be targeted at people who set themselves up as private companies to take on work.

The BBC understands it could be announced in this month's Budget.

The Treasury believes a third of people claiming self-employed status as a "personal service company" are actually full employees and should pay more tax."

[original PM]

Well they have a point.

How many of you have multiple contracts on the go at once (like a builder for example)?

How many of you provide more than just 'a disguised employee' type service to your clients?

How many of you have regular repeat customers as opposed to taking what you can can get from an agency?

How many of you simply use the ltd company as a handy way to avoid tax?

(ok I admit nowadays there are few agencies who will actually take you as a permie but...)

I know many of you on here maybe 'proper' limited companies, selling sledges and what not.

[Cirrus]

Mods: Permaban please

I know many of you on here maybe 'proper' limited companies.

The definition of a contractor is a person who is indistinguishable from IBM apart from the minor matter of number of employees.

If you don't believe that in a totally fundamental way then you're not a true contractor.

[original PM]

The definition of a contractor is a person who is indistinguishable from IBM apart from the minor matter of number of employees.

If you don't believe that in a totally fundamental way then you're not a true contractor.

I agree but reality is many many contractors are just bums on seats.

[sasguru]

Looks like private sectors is well in sights for this budget

Hammond plans tax crackdown on 'synthetic self-employed' - BBC News

"The Treasury is finalising plans to overhaul tax rules which allow self-employed people to avoid paying national insurance contributions.

The move will be targeted at people who set themselves up as private companies to take on work.

The BBC understands it could be announced in this month's Budget.

The Treasury believes a third of people claiming self-employed status as a "personal service company" are actually full employees and should pay more tax."

Brexit, Corbyn, Contrcator clampdown.

The UK is fooked. Oh, well, WGAS?

[CoolCat]

Well they have a point.

How many of you have multiple contracts on the go at once (like a builder for example)?

How many of you provide more than just 'a disguised employee' type service to your clients?

How many of you have regular repeat customers as opposed to taking what you can can get from an agency?

How many of you simply use the ltd company as a handy way to avoid tax?

(ok I admit nowadays there are few agencies who will actually take you as a permie but...)

I know many of you on here maybe 'proper' limited companies, selling sledges and what not.

the reality is if you take a temporary job far from home you should not be expected to pay for hotel and travel out of taxed income, if you are then you are at an unfair disadvantage against the large consultancies and outsourcers who will be able to send workers who get expenses tax free, and so much more

[AtW]

Anybody traveling to work >60 miles should be entitled to travel expenses before tax.

A reasonable allowance for travel should be given to anybody going <60 miles too, it's a way to encourage getting better paying jobs FFS

[Jog On]

I agree but reality is many many contractors are just bums.

FTFY

[original PM]

the reality is if you take a temporary job far from home you should not be expected to pay for hotel and travel out of taxed income, if you are then you are at an unfair disadvantage against the large consultancies and outsourcers who will be able to send workers who get expenses tax free, and so much more

I do not disagree with you.....

Although here is some sage advice - carry on running your limited but don't take the piss with expenses and pay a reasonable amount of tax and I am pretty sure hector will not come knocking.

[vwdan]

Anybody traveling to work >60 miles should be entitled to travel expenses before tax.

A reasonable allowance for travel should be given to anybody going <60 miles too, it's a way to encourage getting better paying jobs FFS

Remember, making things "fair" is NEVER reducing the tax burden of Person A, but always increasing the burden of Person B