Dividends

[NotAllThere]

There's always the danger they might make less of a half-arsed job of it this time. Personally I don't think that would be such a bad thing; if they just came up with some clear rules about what was allowed everybody would know where they stood.

When IR35 was first put forward, the problem was that no-one knew if they were affected by it or not. When the question was raised in the house, Dawn Primarollo (the original Dim Prawn) said (and I paraphrase) "There is no lack of clarity. If you have to pay this tax, you have to pay it. If you don't you don't."

If it had been clear who was affected - even if it meant we ended up at a tax disadvantage compared with a permie on the same income as is exactly the case with people who go brolly - I doubt the PCG would have come into existence.

[GB9]

I think this will cause more hurt than good to be honest, especially if this aims to unfairly penalise small businesses like so many of the revenues tax avoidance schemes. OK the revenue might get a little extra in the short run but the trade off between businesses continuing to trade and the tax revenue in the long run i think will be quite harmful to the UK economy.

Depending upon exactly what is announced this won't be about a small amount. This is new taxation plus. iIt could rake in billions.

[sasguru]

I can get whoever I want to do it (its in the contract). - having it in the contract, 2 points, actually exercising it, 20 points.

I have had multiple clients at one time. - IR35 is on a contract by contract basis. from HMRC
Some businesses have not only engagements outside IR35 but also engagements within IR35.

If I finish any job early I can earn more money for another job. - Good pointer, 10 points

I have my own office (albeit at home). - Irrelevant
Does your business own or rent business premises which are separate both from your home and from the end client’s premises?


The fixed price work is the best indicator you have IMHO.

Aye could at a pinch rent some office space (that gives you another 10 points) - which I was going to do as we have been postponing major renovations on the house due to my working at home. But I'll see what the new deal is first.

[AtW]

It's going to be fine.

[Mich the Tester]

Before any of you think of coming over to NL, we have exactly the same problem here, with similar questions and a similar determination on the part of a party that stood for election as being business friendly to screw every last cent out of small businesses and freelancers to fund their ridiculous and irresponsible spending. Under previous governments that determination was absent, but now that we have a coalition including a so called right wing business friendly party, they're going after money anywhere they think they can find it.

I despair of the miserable little minds of people who spend their days dreaming up questions like this one; 'Does your business own or rent business premises which are separate both from your home and from the end client’s premises?'


I sympathise, but I can't solve the problem. I can only suggest two things;

1 work less, earn less, pay less tax, accept a slightly lower income but get quality of life in return. My aim in this contract is to rebuild the warchest inside the Ltd ready to take several months out studying, cycling, eating, drinking, f***ing and not paying into the ridiculous Ponzi scheme we call a government.

2 vote communist/socialist worker; if they, just like every other party, do exactly the opposite of what they promise then we'll be sorted. If they don't then they'll never get in again.

See my sig below.

[d000hg]

Cobblers. It's getting paid almost double that makes up for the lack of employee rights for contractors; you're not doing it for the NI saving.

That's a totally separate matter. Rates are higher because (in theory) you are getting an expert and because contractors expect to have gaps between contracts.

And as has been said, permies pay employer's NI too, they just don't necessarily know it because salaries are quoted after ERNI

Rubbish. Employers pay Employers' NI, the clue is in the name. If they didn't have to pay it, employees would not suddenly get that money instead. It's a cost to the employer for hiring the employee. And with CT being so easy to dodge by large companies, NI means they are actually paying some tax here in the UK!

Nope. My clients engage me for a job of work, I can get whoever I want to do it (its in the contract).
I have had multiple clients at one time.
If I finish any job early I can earn more money for another job. I have my own office (albeit at home).
Look at the list of questions Hector asks to see if you're IR35 compliant.
Now IR35 is a little vague, but I'm as sure to be out of it as you can be.

I tick all of those boxes other than the fixed-price one but I'm still a contractor. Your contract may say someone else can do the work but the fact is, your clients are coming to you because of your expertise and reputation. The question to ask is, would any of your clients be happy if you quit yourCo and would yourCo get clients without you? I mean in reality, not what does the paperwork claim

[sasguru]

That's a totally separate matter. Rates are higher because (in theory) you are getting an expert and because contractors expect to have gaps between contracts.

Rubbish. Employers pay Employers' NI, the clue is in the name. If they didn't have to pay it, employees would not suddenly get that money instead. It's a cost to the employer for hiring the employee. And with CT being so easy to dodge by large companies, NI means they are actually paying some tax here in the UK!

I tick all of those boxes other than the fixed-price one but I'm still a contractor. Your contract may say someone else can do the work but the fact is, your clients are coming to you because of your expertise and reputation. The question to ask is, would any of your clients be happy if you quit yourCo and would yourCo get clients without you? I mean in reality, not what does the paperwork claim

In reality, my clients sign up for work to be done. Since it's not done on their premises there's no way for them to know who did it.
Probably a moot point as far as IR35 goes, but its probably all academic now

[GB9]

Apparently we will be paying for the married tax break.

[Platypus]

Apparently we will be paying for the married tax break.

I don't mind paying once, but I'm not going to go for the rebate and pay twice (i.e. get married!)

[MicrosoftBob]

I don't mind paying once, but I'm not going to go for the rebate and pay twice (i.e. get married!)

Gwan find someone you hate and give them 70% of your assets and your house, you know it makes sense