IR35 is dead

[_V_]

People should not be afraid of their governments.

Governments should be afraid of their people.

[Pinto]

I own the painting. It's "Golconda" by Rene Magritte. I have it in my loft as there simply aren't enough walls in my three houses for all my original art.

Threaded.

[Pondlife]

People should not be afraid of their governments.

Governments should be afraid of their people.

Quality!

[AlfredJPruffock]

I'm sure that must be a famous painting Alf, but I remember it as the cover of a rather fine 70's album. Do you know it perchance?

Indeed as the Threaded impersonator mentioned its by Rene Magrtitte.

If you like his work Ive found this to be a good site ...

.magritte

For those whom find themselves in Brussels you can visit the Magritte museum at Rue Esseghem 135 where he lived for several years.

[bogeyman]

I own the painting. It's "Golconda" by Rene Magritte. I have it in my loft as there simply aren't enough walls in my three houses for all my original art.

Threaded.

Ha!

Mr. Pinto plays a blinder!

[Asterix]

Cycle of life

When IR35 was introduced, most contractors gave up running Ltd Cos and run for an 'umbrella'. In their infinite wisdom, Gordon and his team have realised that Ltd Cos are easier to 'police' and somehow less likely to trade fraudulently as the onus would be on their Directors. Unlike most/all of the Umbrellas which tread on thin ice on the expenses and other fronts. I reckon they are going to be the next targets and good luck to all of those that have entrusted their cash and hopes in them. IR35 may be dropped because it is very difficult to prove, unlike other legislation like 660A (dividends) etc.

[wendigo100]

What happens when those who rolled over and paid up find out? That's the majority of contractors, including some I have worked with. They will get the right @rse.

[Cowboy Bob]

What happens when those who rolled over and paid up find out? That's the majority of contractors, including some I have worked with. They will get the right @rse.

It's their own fault. I have absolutely no sympathy. I became a contractor after the company I worked for in my last permie job went bankrupt owing me a tulipload load of dosh. I needed work pretty damn quickly and a friend of a friend sorted me out a contract position. I had one week to research how to go about things before I started and get my Ltd set up. Before this point I had no idea what IR35 was. It took me less than a week to research what being a contractor was all about and the pitfalls surrounding IR35. If I can find out from a cold start in such a short period of time, so can anyone. If they don't, it's simply because they can't be bothered. They get everything they deserve IMHO.

[_V_]

What happens to those who don't use their tax free savings allowance, or arrange their finances to avoid inheritance tax etc?

They needlessly pay more tax. Simple as that.

IR35 is a purely voluntary tax for anyone who can be bothered to ensure it does not apply.

Always has been.

[oraclesmith]

I've taken a middle way with IR35.

My Ltd is well outside IR35, in my opinion, but I have been careful to ensure that businesss-to-business measures are in place including direct selling campaigns, proper service contracts etc, and avoided any obvious indicators of large scale avoidance - eg. like paying no income tax at all or below minimum wage.

For example, last year I paid myself a salary roughly equivalent to a permie doing the same work. I also paid a modest dividend and pension and retained quite a bit in the company as well as incurred genuine Ltd co. overheads and capital purchases. They'd probably find the cost of investigation etc not worth the NI/tax they might (not) get back on each short-term contract.

So I've paid more tax than I maybe need to, but I've saved a bit as well.