Dividends

[Jog On]

Isn't this what IR35 is supposed to do?

[MicrosoftBob]

It's inevitable, but at least you can know it will end up hurting the economy

[GazCol]

Isn't this what IR35 is supposed to do?

Well no - IR35 was supposed to ensure that companies paid employers NI contributions in cases of disguised employement. What it's being (or rather heartedly trying to be) applied to is employees being hit for both employers and employees NI contributions and the guilty party (the client co) not being any further out of pocket despite it being them that are trying to avoid paying contributions.

Thursday's announcement, has much wider ramifications as it could apply to every office holder, whether legitimate business or not to make up for the shortfall caused by certain institutions (BBC & NHS!)

[Mich the Tester]

Well it was coming anyway. No way most of you lot with your single, sequential clients, some of which you work for years, are businesses.
Although no doubt there'll be lost of whinging rather than changing your business model to become real cos.

So get two contractors together in a cooperative and serve two customers. Or three; depends on how big you want your cooperative to be. I'd keep it small, maximum five, because I wouldn't want to tend up employing 'managers' and other such overheads.

[Mich the Tester]

Thursday's announcement, has much wider ramifications as it could apply to every office holder, whether legitimate business or not to make up for the shortfall caused by certain institutions (the entire British government since John Major left office!)

ftfy

[Jog On]

I think they should consult Sir Phillip Greene on this....

[Mich the Tester]

I think they should consult Sir Phillip Greene on this....

I think they should read what this lady had to say about tax and business.

[VectraMan]

Isn't this what IR35 is supposed to do?

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.

[d000hg]

Well it was coming anyway. No way most of you lot with your single, sequential clients, some of which you work for years, are businesses.

You are correct, but neither are we employees with paid holidays, sick leave and other perks (health cover, etc).

At the moment the problem seems to be you pay NI twice or not at all, simply making all personal income treated as salary and removing the company-NI aspect would be one obvious option although it still doesn't make up for the fact we don't get benefits & rights afforded to employees. That being said, shift/temporary workers often pay NI/PAYE and have no rights anyway so maybe that's not a good angle to take when earning 10X as much as they do.

Also Sas you may still find yourself caught since you are still a 1-man band and could be tarred with the same brush if big sweeping strokes are made. You're a PSC, I'm a PSC - in both cases the business IS effectively the person involved - your clients engage yourCo because they want your personal expertise.

[expat]

You are correct, but neither are we employees with paid holidays, sick leave and other perks (health cover, etc).

At the moment the problem seems to be you pay NI twice or not at all, simply making all personal income treated as salary and removing the company-NI aspect would be one obvious option although it still doesn't make up for the fact we don't get benefits & rights afforded to employees. That being said, shift/temporary workers often pay NI/PAYE and have no rights anyway so maybe that's not a good angle to take when earning 10X as much as they do.

Employer's NI is a stealth tax, most of the population are unaware of the size of it as a wage bill cost. The logical thing to do would be to unify it in income tax, but no way would any government dare let people see just how high the wage tax bill really is.