Dragonfly

[VectraMan]

It's quite obvious (and was always going to happen eventually) that contracting outside IR35 is nearly finished. Every case like this just adds weight to the Revenue's POV. Pretty soon, it'll be impossible to argue the toss, because some (dare I say it, paid-off) judge has made a "flip a coin" decision that the Revenue's brief will parade in court as precedent.

At the moment the chances of an investigation are small, but the big problem I see is that if they get to a position of winning most cases they won't need to fight them in court. They'll just send out warning letters to anybody they can identify, and most of us will probably cough up with little chance of defending it, and that'll be that.

Let's hope the Tories do overturn it. Can't say I'm hopeful. All this does make me slightly more determined to get the Plan B going and not count on contracting long term.

[ratewhore]

It's quite obvious (and was always going to happen eventually) that contracting outside IR35 is nearly finished.

I wouldn't necessarily agree with that. I suspect the current govt will continue fine tuning the tax system so it doesn't matter whether you are IR35 caught or not. There will be minimal difference between net income either way. Then, they won't have to bother with the cost of IR35 investigations...

[The Lone Gunman]

I wouldn't necessarily agree with that. I suspect the current govt will continue fine tuning the tax system so it doesn't matter whether you are IR35 caught or not. There will be minimal difference between net income either way. Then, they won't have to bother with the cost of IR35 investigations...

I wouldnt mind that. At least I would be able to decide if a rate was decent and to take a contract or not.

[Epiphone]

Vote Tory - got to be worth a punt.

Why, have they said they'll ditch IR35?

[BoredBloke]

They did in an email I got a while back from the office of George Osbourne. But who knows - it's not like a politician to stick to their word.

[TykeMerc]

Why, have they said they'll ditch IR35?

I'd be amazed if they did dump IR35 Governments aren't famous for abandoning measures that bring in them revenue.

[oracleslave]

I'd be amazed if they did dump IR35 Governments aren't famous for abandoning measures that bring in them revenue.

AFAIK IR35 hasn't brought in anywhere near as much revenue as anticipated and the cost of enforcing it makes it pointless....I think.

[ratewhore]

I'd be amazed if they did dump IR35 Governments aren't famous for abandoning measures that bring in them revenue.

Isn't it losing revenue overall?

On another note, which is the insurance that will pay your tax and penalties as well as cover the cost of the investigation?

[Epiphone]

I agree with TLG, the PCG should attack this ruling with the fury of God's own thunder (and I'll be posting in the PCG fora later). The agency and client should be sued for employment rights and every benefit that goes with it.

Great attention should be drawn to the fact that HMRC looked at the upper contract too and every Press outlet in the land should be educated as to why the two, seperate, commercial contracts shouldn't be used to penalise an legitimate business based on a gray, wooly law that has no solid basis and changes at the whim of whomever attempts to interpret it on behalf of HMRC.

[Epiphone]

They did in an email I got a while back from the office of George Osbourne. But who knows - it's not like a politician to stick to their word.

I had a look on their website a few months back but couldn't see anything about IR35. But, like you say, who trusts a politician.