IR35 Guide

[NigelJK]

What I find oddest is that the VAT take far outstrips any minor difference in 'worker tax + Ni' yet this isn't taken into consideration. The loss to the Treasury must be huge. In my case going back to permidom is costing them £20K+ year, and I was only a middle rate contractor.

[TwoWolves]

What I find oddest is that the VAT take far outstrips any minor difference in 'worker tax + Ni' yet this isn't taken into consideration. The loss to the Treasury must be huge. In my case going back to permidom is costing them £20K+ year, and I was only a middle rate contractor.

There is absolutely no logic to the implementation of IR35, this is entirely driven by ideology and bloody-minded envy within the civil service. The irony is that most of the people involved consider themselves moderate "Blairite"/business friendly socialists or social conservatives.

[Mordac]

Yes... but under the defunct business entity tests if you have over 10% bad debt per year that was seen a positive. The mind boggles!

Nowhere near 10% thankfully, it was fixed price but amounted to about 3 weeks plus some expenses.

[Mordac]

What I find oddest is that the VAT take far outstrips any minor difference in 'worker tax + Ni' yet this isn't taken into consideration. The loss to the Treasury must be huge. In my case going back to permidom is costing them £20K+ year, and I was only a middle rate contractor.

Whatever you pay to HMRC would have been paid by the client, but since they paid it to you they deduct it from their own bill. Ultimately only consumers actually pay VAT, so why don't we have a sales tax? EU Law says we have to have VAT, which is bureaucratic and stupid. I wonder if that's a coincidence...?

[jds 1981]

I was lead to believe that banks at least have issues with claiming vat?

[NotAllThere]

I was lead to believe that banks at least have issues with claiming vat?

They do. They have to pay VAT, but can't claim against it.

[Hobosapien]

Ultimately only consumers actually pay VAT, so why don't we have a sales tax? EU Law says we have to have VAT, which is bureaucratic and stupid. I wonder if that's a coincidence...?

Has there been any reference to this by those pushing to leave the EU or are they too caught up in 'backstop hell' to think about promoting any real benefits?

Maybe they could change it so VAT registration means exempt from having to charge or pay VAT unless interacting with a non VAT registered person or entity.

One positive I see from the bxriet* shambles is the government will need to be pro-active in encouraging actual positive change to have a chance of surviving the next couple of general elections over the next 5 years or so when the reality of birext* is clear to those feeling it in their pockets.

*Still a bannable offence to use the actual word in General?

[NotAllThere]

*Still a bannable offence to use the actual word in General?

Mentions in passing are ok. But you misspelled it, so we won't notice anyway.

[darmstadt]

I honestly don't know much about IR35 but does this ring true to our experts here: Why Millennial Freelancers Are Getting Hit With Huge Tax Fines - VICE

[PTP]

A very anti-contractor podcast by Daily Mail

https://www.thisismoney.co.uk/money/... the same time

The idiot on there thinks it's a simple question of are you working for more than 1 client at the same time