Every single IT project manager at a bank ever

[GhostofTarbera]

Will also be caught

https://www.contractorweekly.com/tax...ir35-tribunal/

[Paddy]

Judicial Review is the next stage so it is not over yet.

[vetran]

Its odd when you sign a contract with an agency that includes a ROS that the Agency and R35 can ignore that. If the client & agency did not intend to honour it. Why can't you after you lose the case sue the agent & client for breach of contract and resultant damages?

[SimonMac]

Its odd when you sign a contract with an agency that includes a ROS that the Agency and R35 can ignore that. If the client & agency did not intend to honour it. Why can't you after you lose the case sue the agent & client for breach of contract and resultant damages?

I'm no expert, but I'm guessing to sue you have to prove a loss, and you can't prove a loss when it's a point of law that says you have to pay that money

[cannon999]

The taxman claimed Lee’s contract with the high street bank fell inside IR35, meaning he was liable to pay National Insurance Contributions (NICs) and Income Tax on earnings from the assignment.

This bit I don't really understand. How is the income tax amount calculated here? I assume this person took out dividends and paid dividend tax on those - is that taken into account? What if they split income with a spouse and their spouse also paid dividend tax?

[Whorty]

It's an interesting thought that a PM can't be substituted as it would take too long to get up to speed ... surely that's the same for any/every role? Even a programmer needs a few days to understand what has gone on before, what requirements are, how the current code looks, dev and release processes etc ..... ?

[northernladuk]

This bit I don't really understand. How is the income tax amount calculated here? I assume this person took out dividends and paid dividend tax on those - is that taken into account? What if they split income with a spouse and their spouse also paid dividend tax?

I think we've had a few posts on this but can't remember the exact outcome. Won't they just take the gross amount of income and tax it as inside and then just demand that figure back minus taxes already paid? I seem to remember in one of the posts something about them not even taking in to account taxes paid but I don't know if that was just a discussion point or whoever mentioned it referred to a case or not.

[Whorty]

This bit I don't really understand. How is the income tax amount calculated here? I assume this person took out dividends and paid dividend tax on those - is that taken into account? What if they split income with a spouse and their spouse also paid dividend tax?

Re corp tax, there may be a case for a refund as the NICs and salary the contractor 'could' take out the company will impact profits and hence less corp tax to pay.

Re divs, it's unrelated. They have been paid and can't claim that tax back. Of course if the contractor does now pay himself 'salary' for these years to reduce his profit (and hence corp tax) he will now have a bigger personal tax liability as he also took out divis the same tax year.

All very messy ... I'm probably wrong on some of this as just thinking off top of my head, but needs some proper thinking to get this right for the contractor.

This is one reason I closed my LTD down a few years ago and just go umbrella now - costs more, but at least I'm not going to get that knock on the door any more. I think contracting as we've known it for the past 20 years is over, welcome to the new world of a virtually bankrupt country that needs to squeeze high earners until they squeak!

[northernladuk]

It's an interesting thought that a PM can't be substituted as it would take too long to get up to speed ... surely that's the same for any/every role? Even a programmer needs a few days to understand what has gone on before, what requirements are, how the current code looks, dev and release processes etc ..... ?

What people forget is that when they provide a substitute it is up to them to get that substitute up to speed in their own time and money. You don't just send a new guy in on the Monday and all is well, that's not a substitute. The sub should be able to pick up the day after the contractor isn't available to some degree of competence. Often the term sub is banded about without people really thinking about how it should work.

[cannon999]

I think we've had a few posts on this but can't remember the exact outcome. Won't they just take the gross amount of income and tax it as inside and then just demand that figure back minus taxes already paid? I seem to remember in one of the posts something about them not even taking in to account taxes paid but I don't know if that was just a discussion point or whoever mentioned it referred to a case or not.

But this makes even less sense. If my spouse is getting dividends from my company, she is in no way involved with the contract work itself - how could that income be treated as PAYE?