Chancellor vows to ban 'one man firms'

[Churchill]

It seems as though the Chancellor wants to ban the use of limited companies being used within the public sector, no reason that this will be extended more generally.

I agree that the reporting is sloppy and makes no true comparison.

Does this include the BBC? I remember this crap rearing its ugly head when "John Birt" was rising through the ranks at the Beeb...

Birt's promotion to Director-General in 1992 caused immediate controversy. On top of all the internal opposition, it was then revealed that, though Director-General, Birt was being employed on a freelance consultancy basis in order to write-off numerous personal expenses against tax, including "secretarial services" from his wife. While perfectly acceptable in the private sector, such practices were considered unacceptable in a Director-General of the BBC. Under political and public pressure, Birt became a BBC employee. He had to sell his shares in LWT, part of his final salary settlement with the company. When in 1994 LWT was bought by Granada, Birt lost out on a windfall of what would have been several million pounds.

[TiroFijo]

Vote Conservative and get IR35 repealed.

Vote Conservative and get the marriage tax break re-introduced

[centurian]

It seems as though the Chancellor wants to ban the use of limited companies being used within the public sector, no reason that this will be extended more generally.

I agree that the reporting is sloppy and makes no true comparison.

Well if he wanted to ban it within public sector - just issue an edict to all government departments "thou shalt not "employ" contractors" - simples.

But to extend that within the private sector would require a change in the law, essentially tightening IR35, or replacing it with something much stricter.

[BrilloPad]

Oh dear. The Conservatives are going right off track. This is just bluster to keep the plebs happy.

As NL found out with IR35, it is very hard to do this in practice.

More importantly, those who take a contract rather than a permanent role carry risk and this should be rewarded.

And those who are in companies tend to create wealth and jobs. These are just the sort of people the Conservatives should be helping - not attacking. All most in this country what is a job - hence we need job creators.

Yet another reason to leave this hell hole of a country and move somewhere decent.

[BlasterBates]

I think this will come. You can't work anywhere these days through a one man co and avoid national insurance. The UK is probably the only place where you could fairly easily get away with it.

In the countries I've worked in Germany, Switzerland and Luxembourg, very difficult to avoid paying, and they crack down on anyone avoiding it, i.e. freelancers and one man bands. As far as I'm aware in the US they're also pretty tough, but that's just what I heard.

[Arturo Bassick]

I think this will come. You can't work anywhere these days through a one man co and avoid national insurance. The UK is probably the only place where you could fairly easily get away with it.

In the countries I've worked in Germany, Switzerland and Luxembourg, very difficult to avoid paying, and they crack down on anyone avoiding it, i.e. freelancers and one man bands. As far as I'm aware in the US they're also pretty tough, but that's just what I heard.

It is killing contracting in Germany though. The big players in my industry are refusing to take on "freelancers". The only contracts on offer are AUG but they will not up the rates to give the contractor the same take home. I am a preferred supplier to one of my ex clients, they have years of work for me which can all be split down to fixed price deliverables but company policy is AUG only.

This all needs sorting out everywhere. Years of pissing about and knee jerk legislation is killing us and damaging our industries. Our clients need a flexible work force and we are willing to provide it. Government can only see lost tax or NI. There are guilty parties out there, but they seem to have the ear of the Governments (more in the UK than other countries).
I am one of those who would be happy if legislation came down that meant I could not avoid the taxes or could not work as a Ltd. I want clear and concise rules so that I can set up within the law and charge appropriately.
At the moment I am never quite sure of my tax status and neither are my clients. That makes us all nervous and creates a difficult business environment.
All parties need to get round a table and sort out all the issues.

[BlasterBates]

It is killing contracting in Germany though. The big players in my industry are refusing to take on "freelancers". The only contracts on offer are AUG but they will not up the rates to give the contractor the same take home. I am a preferred supplier to one of my ex clients, they have years of work for me which can all be split down to fixed price deliverables but company policy is AUG only.

This all needs sorting out everywhere. Years of pissing about and knee jerk legislation is killing us and damaging our industries. Our clients need a flexible work force and we are willing to provide it. Government can only see lost tax or NI. There are guilty parties out there, but they seem to have the ear of the Governments (more in the UK than other countries).
I am one of those who would be happy if legislation came down that meant I could not avoid the taxes or could not work as a Ltd. I want clear and concise rules so that I can set up within the law and charge appropriately.
At the moment I am never quite sure of my tax status and neither are my clients. That makes us all nervous and creates a difficult business environment.
All parties need to get round a table and sort out all the issues.

Well, unfortunately, it's basically down to the fact that you pay it and if you don't you'll get knobbled. I feel fortunate that for a number of years I got away with it. Over the last 8 years in Luxembourg and Switzerland I've been paying it. I got a letter from the German authorities a while back enquiring why I'm not paying "Sozialversicherung", but fortunately my freelance period was far enough back in time for them to ignore it. If they'd seen I was a current freelancer I think they would have demanded a contract and if I'd been with same client for more than a few months I think they would have just sent a bill for the previous 4 years, i.e. EUR 20,000. The onus would be on you to prove you were a true freelancer.

[SantaClaus]

It's not by accident the government are doing this. They want to help their pals, the big consultancies. Not forgetting Wipro of course.

[doodab]

I think we need coordinated action to show them we're not to be messed about.

STRIKE!!!

[eek]

Oh dear. The Conservatives are going right off track. This is just bluster to keep the plebs happy.

As NL found out with IR35, it is very hard to do this in practice.

More importantly, those who take a contract rather than a permanent role carry risk and this should be rewarded.

And those who are in companies tend to create wealth and jobs. These are just the sort of people the Conservatives should be helping - not attacking. All most in this country what is a job - hence we need job creators.

Yet another reason to leave this hell hole of a country and move somewhere decent.

To be honest on all the examples that have been publicised within Government they should all:-

1) have been subject to IR35
2) the person involved and the person who signed it off should be fired for Gross Misconduct because of 1.

If the latter was the case the government would not be in this mess over what is really a minor amount of money attached to a large amount of arrogance and rightful annoyance.