Mini Budget aka Fiscal Statement

[dsc]

[...]not least because HMRC recommends that the contractor should be pursued for any shortfall, and the contract most likely allows it.

ah forgot about that little pickle...

[mattster]

Agree. No, nothing.

Strange because I'm sure that was one of the things mentioned in the run up. Maybe they are waiting for a real budget? But more likely they'll keep the freeze, since freezing rates and letting inflation erode the thresholds simply doesn't get noticed in the same way by the vast majority of people.

[jamesbrown]

Strange because I'm sure that was one of the things mentioned in the run up. Maybe they are waiting for a real budget? But more likely they'll keep the freeze, since freezing rates and letting inflation erode the thresholds simply doesn't get noticed in the same way by the vast majority of people.

If they were serious about reducing the tax burden on middle incomes, they'd certainly increase the thresholds. By focusing on income tax rates, that suggests they're as much or more interested in the visibility as the impact.

[jamesbrown]

I suspect many of the clients that found their roles were definitely inside - will suddenly find they were definitely outside again, but only from the next tax year of course

Which spells a lot of trouble for any contractors accepting such gigs in a few years time...

The only thing they could've done that wouldn't have caused renewed chaos in the sector is to repeal it altogether. I expect these changes will be met with overwhelming support from the contracting sector, initially, but I also suspect some of that glee will unwind in the coming year or two as the consequences become clear. /end voice of doom

[quackhandle]

But shirely we go back to what we did pre 2017 and get the contract checked by QDOS, B&C, whoever. You would think clients would want to help now as the risk has been put back on us again, as if the contract isn't outside we walk away (well some will, some won't).


qh

[vwdan]

Which spells a lot of trouble for any contractors accepting such gigs in a few years time...

The only thing they could've done that wouldn't have caused renewed chaos in the sector is to repeal it altogether. I expect these changes will be met with overwhelming support from the contracting sector, initially, but I also suspect some of that glee will unwind in the coming year or two as the consequences become clear. /end voice of doom

It might be just my endless optimism (And not gonna lie, I've been Googling Liz Truss IR35 most days!), but to me this is a warning shot accross the bow for IR35. Especially the last line in the announcement:

"The reform also minimises the risk that genuinely self-employed workers are impacted by the underlying off-payroll rules."

I'm expecting a review of IR35 to come soon, and I wonder if it'll be even further diluted and abolished. Usually one would say something about tax receipts at ths point, but Liz doesn't seem to care about that sort of thing...

[dsc]

I suspect many of the clients that found their roles were definitely inside - will suddenly find they were definitely outside again, but only from the next tax year of course

It's going to be the reverse of "I've been deemed inside by my client but been outside for the last 10 years, what to do?". Fun times.

[SimonMac]

But shirely we go back to what we did pre 2017 and get the contract checked by QDOS, B&C, whoever. You would think clients would want to help now as the risk has been put back on us again, as if the contract isn't outside we walk away (well some will, some won't).

But that's the problem, a piece of paper from QDOS saying you are outside is not the same as being outside when working practices etc are investigated, there is also going to be a reliance on clients giving evidence in an investigation etc etc etc.

[dsc]

But shirely we go back to what we did pre 2017 and get the contract checked by QDOS, B&C, whoever. You would think clients would want to help now as the risk has been put back on us again, as if the contract isn't outside we walk away (well some will, some won't).


qh

Why would they help? they hardly ever did pre 2017, they will just care as little as before. And look at the amount of permietractors who "walked" when the new rules got introduced...yeah, most just went inside and carried on regardless, now they will be more happy as they will earn more being outside, but they won't care one bit about whether they are really outside.

[mallisarealperson]

2023 is lining up to be an interesting year. Big part of the ir35 issue is Liz is trying to shore up votes.