MSC stuff in Telegraph

[Euro-commuter]

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.....

A "flexible" supply of workers who are nonetheless constrained to pay the "correct" tax by PAYE is exactly what the government wants. Having every contractor forced into working for EDS and Accenture is the ideal way to ensure this. I'm sure they consulted "industry representatives" and were told that this was so.

Pay much less tax? Where would that be then?
More flexible vehicle? Not in most places I've worked.
Commute to Euroland? You mean remain resident in the UK? Then you still pay tax here.

[andy]

Time to move to monaco just like many great business leaders in this country.
Commute to UK for work and get non residence status.

[youngguy]

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!

Sorry, I meant I'd be in a fix as the EDS, Accetnure , Cap Gemini route is not one I would like top go down!

The gov should be in a fix...taxpayers should be asking why there are Accenture people working on Long term Gov projects for £1200 a day when a contractor would be on £500 or a perm civil servant on £200.

[MickeyP]

Time to move to monaco just like many great business leaders in this country.
Commute to UK for work and get non residence status.

Please tell me how you can commute to work in the UK and get non residence status in the UK at the same time?

[andy]

Please tell me how you can commute to work in the UK and get non residence status in the UK at the same time?

There is some kind of loophole that if you spend 3 days in a week in UK excluding the day of travel you are non-resident for tax purpose in UK . Saw some programme on telly about how the topshots avoid taxes this way.

[threaded]

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

All non criminal law is retrospectable. Criminal is stopped by virtue of the HRA.

HTH

[Rantor]

A "flexible" supply of workers who are nonetheless constrained to pay the "correct" tax by PAYE is exactly what the government wants. Having every contractor forced into working for EDS and Accenture is the ideal way to ensure this. I'm sure they consulted "industry representatives" and were told that this was so..

I agree, this was always how I saw IR35 with the government responding to lobbying from the major players and trying to restructure the services market by making some suppliers (us) uncompetitive and deter entry to that market.

Pay much less tax? Where would that be then?
More flexible vehicle? Not in most places I've worked.
Commute to Euroland? You mean remain resident in the UK? Then you still pay tax here.

Tsk, of course you can. If you work in a country for more than x days, you will sbe liable for paying your tax to the authoirites of the country where the work was carried out. Indeed some countries (the dutch) effectively force you down that route from day 1. Management companies, income splits etc. - these options are tolerated under some tax regimes.

[BoredBloke]

"I agree, this was always how I saw IR35 with the government responding to lobbying from the major players and trying to restructure the services market by making some suppliers (us) uncompetitive and deter entry to that market."

It's not just us! Their people know how much they are charged out at, so it's harder for the consultancies to keep hold of them - unless they could think of a way of reducing the opportunities.........................

[Euro-commuter]

There is some kind of loophole that if you spend 3 days in a week in UK excluding the day of travel you are non-resident for tax purpose in UK . Saw some programme on telly about how the topshots avoid taxes this way.

If you spend less than 183 days in a single year, and less than 91 days per year on average (actually nights, for the UK), then you will normally be considered non-resident.

But not always: a pilot who spends less than 91 days per year in the UK was nevertheless recently judged resident, because the UK remained his base.

And do not think that what works for the rich will work for you.

[threaded]

Oddly enough I know a few air crew types and they work through a Swiss agency. Live in Denmark, but don't pay any income taxes anywhere.