Today's Budget

[Not Losing Any Sleep]

Haven't heard anything yet which troubles me.

[Unix]

Haven't heard anything yet which troubles me.

You won't lose any sleep over it?

[mrmonkeyboy]

Haven't heard anything yet which troubles me.

Check again now!!

[Not Losing Any Sleep]

Check again now!!

I didn't spot anything, what are you referring to?

[Unix]

I didn't spot anything, what are you referring to?

Contractors are now considered outlaws and can be killed on sight by civilians.

[Not Losing Any Sleep]

Contractors are now considered outlaws and can be killed on sight by civilians.

I thought that was public sector only.

[matzie]

Things I've spotted in the docs so far -

* public sector responsible for determining contractor status and for paying the tax - from April 2017

"From April 2017, where the public sector engages an off-payroll worker through their own limited company, that body (or the recruiting agency if the public sector body engages through one) will become responsible for determining whether the rules should apply, and for paying the right tax. This strengthens the public sector’s role in ensuring that the workers it engages comply with the rules."

* more 'consultation'

"The government also recognises that the current rules are seen as complex and can create uncertainty. It will therefore consult on a simpler set of tests and online tools that will provide a clear answer as to whether and when the rules should apply."

* Loans to participators tax rate raised from 25% to 32.5% - from April 2016

"Budget 2016 announces an increase in the rate of tax payable by close companies under the loans to participators rules so that it continues to mirror the higher rate of dividend tax. The loans to participators tax rate will be increased from 25% to 32.5% in April 2016, with effect for loans, advances and arrangements made on or after 6 April 2016."

https://www.gov.uk/government/public...rking-people-1

Section 3.30 and following

[westtester]

"From April 2017, where the public sector engages an off-payroll worker through their own limited company, that body (or the recruiting agency if the public sector body engages through one) will become responsible for determining whether the rules should apply, and for paying the right tax. This strengthens the public sector’s role in ensuring that the workers it engages comply with the rules."

If an agency is responsible for determining your status AND drawing up your contract, presumably they could be persuaded to word the contract in such a way that you are able to be declared outside IR35? Otherwise they might find it much harder to find contractors willing to take on PS roles. I look forward with trepidation to the next round of consultation on what HMRC considers to be business rules.

[DonkeyRhubarb]

From April 2017, where the public sector engages an off-payroll worker through their own limited company, that body (or the recruiting agency if the public sector body engages through one) will become responsible for determining whether the rules should apply, and for paying the right tax.

So, if you're contracting for the public sector, use a tax avoidance scheme.

[carling]

4.27 Disguised remuneration
At Autumn Statement 2015 the government announced it would ensure that those who have used disguised remuneration tax avoidance schemes pay their fair share of tax and National Insurance contributions. In 2011, the government legislated to clamp down on these schemes. This action successfully protected £3.9 billion, £100 million more than originally estimated.145 Since then, new schemes have emerged which attempt to sidestep this legislation.
These schemes often involve individuals being paid in loans through structures such as offshore Employee Benefit Trusts. The government will raise £2.5 billon146 by taking action to tackle both the historic and continued use of these schemes, beginning with legislation in Finance Bill 2016 and with further action to follow in future Finance Bills. This will include a new charge on loans paid through disguised remuneration schemes which have not been taxed and are still outstanding on 5 April 2019.