MSC stuff in Telegraph

[threaded]

Yes, retro-action is not only possible, but the intention.

Remember you read it here first.

[MobileCheese]

Yes, retro-action is not only possible, but the intention.

Remember you read it here first.

But what about the cr*p about it being new legislation rather than re-interpretation and therefore not retrospecticable ?

[andy]

I've thought all along this will lead to IR35 Mk II.

IR35 Mk II :

one man companies can not take dividends.
Pay your 40% tax and 12%(?) NI ASAP

Gordon Brown

[malvolio]

What is still not clear is whether this new legislation means they are going to try and retrospectively tried to claim back the tax when someone was using a MSC prior to the 6th April. I have seen people say 'no they cant its new legislation' but the more I read articles on it though not mentioned directly the wording implies they will try and back date it.

No one seems to know on this I have asked a few accountants and legal eagles but they dont know. Im I reading to much into it or is the retro application possible so we have to pack back dated tax ?

Not sure they can. AIUI they have reserved the right to apply changes to regulations retrospectively, back to Dec 2004. However, the change of treatment of MSCs is not a regulation change, it is a new legal position, hence they cannot backdate it. Which makes sense.

That said, there is a separate debate about the change itself, since it was announced in the PBR and made effective even though it has not been announced in the budget itself and will not have been through parliamentary scrutinity and approval when it comes into force. Another example of NL's total disregard for due process.

However, they also now have a new list of people who used to use MSCs who are now using LtdCos. Wonder if that will bias the list of people due for a compliance check...?

[MobileCheese]

Not sure they can. AIUI they have reserved the right to apply changes to regulations retrospectively, back to Dec 2004. However, the change of treatment of MSCs is not a regulation change, it is a new legal position, hence they cannot backdate it. Which makes sense.

That said, there is a separate debate about the change itself, since it was announced in the PBR and made effective even though it has not been announced in the budget itself and will not have been through parliamentary scrutinity and approval when it comes into force. Another example of NL's total disregard for due process.

However, they also now have a new list of people who used to use MSCs who are now using LtdCos. Wonder if that will bias the list of people due for a compliance check...?

I moved MSC to ltd 10months ago, part of me just wants to take the hit and do the full PAYE thing as Im sick of worrying about it, but the other half of me thinks its so wrong, why should I act like a LTD for the benefit of my client, and as an employee for the benefit of the goverment. Makes me so angry

[malvolio]

I moved MSC to ltd 10months ago, part of me just wants to take the hit and do the full PAYE thing as Im sick of worrying about it, but the other half of me thinks its so wrong, why should I act like a LTD for the benefit of my client, and as an employee for the benefit of the goverment. Makes me so angry

Join the PCG then. There's another 12.5k angry people in there already!

[Lockhouse]

Join the PCG then. There's another 12.5k angry people in there already!

...and sometimes some of us come over here and be angry as well.

[youngguy]

I moved MSC to ltd 10months ago, part of me just wants to take the hit and do the full PAYE thing as Im sick of worrying about it, but the other half of me thinks its so wrong, why should I act like a LTD for the benefit of my client, and as an employee for the benefit of the goverment. Makes me so angry

Agreed. Why have the risk and work of Ltd without the tax benefits.

Has the Gov thought this through? They themselves rely on 'flexible' workers such as contractors. At a time when their contractor numbers are increasing (due to the adage of reeducing the civil service by 100,00) they may find themselves in a fix when the contractor market is reduced

[Euro-commuter]

Agreed. Why have the risk and work of Ltd without the tax benefits.

Has the Gov thought this through? They themselves rely on 'flexible' workers such as contractors. At a time when their contractor numbers are increasing (due to the adage of reeducing the civil service by 100,00) they may find themselves in a fix when the contractor market is reduced

What else would you do?

How will they find themselves in a fix? The people who are contractors won't disappear, they just won't be contractors any more. If it's no longer worth it to work as a one-person contractor, most will just go into employment. EDS and Accenture will take you on. Of course, you won't make so much.

And I'm sure that many agencies will be happy to become "software houses" paying you a salary of 35-40% of the billing rate. If you didn't like them as agents, wait till they're your boss!

[Rantor]

And I'm sure that many agencies will be happy to become "software houses" paying you a salary of 35-40% of the billing rate. If you didn't like them as agents, wait till they're your boss!

I considered that one as well a few years ago and it seemed too hideous to contemplate - surely it couldn't come to that but now I'm not so sure.

Of course, you could always commute to euroland and work through a more 'flexible' vehicle than a UK ltd. Maybe even pay less, much less, tax.....