The Official 2018 Budget DOOM thread

[jamesbrown]

Government response to IR35 consultation here:

https://assets.publishing.service.go..._responses.pdf

From the response:

Further, the government intends to refine the design of the reform to help businesses to make the
correct determination and ensure that they are not incentivised to make the wrong
determination. The government will publish a further detailed consultation on the full
proposals next year to ensure stakeholder needs inform the legislation.

[jamesbrown]

Government response to IR35 consultation here:

https://assets.publishing.service.go..._responses.pdf

Also:

The government intends to use similar
criteria to define small businesses as is found in the Companies Act 2006.

[cojak]

Here you go:

3.8 Off-payroll working in the private sector – To help people comply with the existing rules and bring private sector organisations in line with public-sector bodies and agencies, the government will reform the off-payroll working rules (known as IR35) in the private sector. This follows consultation and the roll-out of reform in the public sector. Responsibility for operating the off-payroll working rules will move from individuals to the organisation, agency or other third party engaging the worker. To give people and businesses time to prepare, this change will not be introduced until April 2020.Small organisations will be exempt, minimising administrative burdens for the vast majority of engagers, and HMRC will provide support and guidance to medium and large organisations ahead of implementation. (54)

[jamesbrown]

Government response to IR35 consultation here:

https://assets.publishing.service.go..._responses.pdf

Also:

HMRC is looking at where the CEST
tool, along with wider guidance, might be improved, both as part of normal good practice
and to ensure it reflects the needs of the larger and more diverse private sector. HMRC
will work in collaboration with stakeholders to better understand the concerns about
CEST raised in response to this consultation; these included saying more about
mutuality of obligation, how to treat multiple contracts and clarifying the language used
in places.

[jds 1981]

Expected to bring in 1.165 billion in 2020-2021!

[jamesbrown]

Expected to bring in 1.165 billion in 2020-2021!

Look at it this way.

"What is the size of the hole we need to fill?"

"Can we get away with saying this fills it?"

In other words, read that with a healthy dose of The Thick of It or Yes, Minister.

[AtW]

HMRC can gather all they like. Any liability is clearly the clients so not my concern.

They (clients) will include tax warranties for you to be liable (bypassing corporate veil)

[ShandyDrinker]

Expected to bring in 1.165 billion in 2020-2021!

I noticed that too. It then roughly halves the following year. Retrospective investigations?

I'd also like to know what their definition of a small organisation is.

[Guvernator]

They've stated that they will use the definition of small business that is in the Companies Act 2006 which is basically

1) Turnover less than £10.2m

2) Balance sheet total not more than £5.1m

3) Not more than 50 employees

None of the clients I have worked for in the last 10 years qualifies as a small business, in fact I very much doubt a business of that size would be able to afford contractors. It's a red herring.

[Guesstimator]

They (clients) will include tax warranties for you to be liable (bypassing corporate veil)

Forgive me, I'm dense and haven't been following this particular aspect but how can they do that without you knowing? Would it be in the upper level contract?