2019 tax charge - consultation preparation

[AtW]

Which is why HMRC and HMG are now coming after Contractors who avoid NICs by working through a limited company. It's tax avoidance, plain and simple.

National Insurance Contributions are not a tax...

P.S. It's obviously a joke.

P.P.S. The real problem for Ltds now is increase in dividend taxation, which will go up and make lack of NICs irrelevant - corp tax will cover it instead.

[jbryce]

National Insurance Contributions are not a tax...

P.S. It's obviously a joke.

P.P.S. The real problem for Ltds now is increase in dividend taxation, which will go up and make lack of NICs irrelevant - corp tax will cover it instead.

Yes - ok it's not a tax, but the point is that HMG and HMRC are just gunning for us.
Sigh.

[AtW]

Yes - ok it's not a tax, but the point is that HMG and HMRC are just gunning for us. Sigh.

They are gunning for everybody now, except very large multinationals, but even there some positive changes coming.

[Whysoserious]

The simple truth is that the country is financially broken. The NHS pension alone faces a £500bn deficit.

The Government, via HMRC are out to obtain (steal) every penny they can via ANY means they can. Retrospective taxation laws are one means of extracting maximum cash from a group whose screams can't be heard by the general public.

Retrospective dividend taxation laws on all "1 man" Ltd Co wouldn't be so surprising given their past ability to use time travel to inflict financial ruin on a group of people.

[webberg]

but even there some positive changes coming.

Really?

You don't think that saying such things is just part of the PR campaign to make the "little people" feel a bit better?

Having worked for multinationals for 20 years and seen just how ineffective HMRC (and others) are in the face of money to buy the best advisers and a quietly wielded but heavy political influence, I do not for one moment believe that any of the present plans will make any significant difference in the rate or quantum of tax collected.

BEPS (base erosion and profit shifting) took years to agree and eventually came up with a code that could be cherry picked and ignored at will and which almost immediately led to calls for real action.

For so long as politicians (of all colours) are reliant upon the good will of the multinationals and in their pockets, expect no real change.

[LadyPenelope]

Really?

You don't think that saying such things is just part of the PR campaign to make the "little people" feel a bit better?

Having worked for multinationals for 20 years and seen just how ineffective HMRC (and others) are in the face of money to buy the best advisers and a quietly wielded but heavy political influence, I do not for one moment believe that any of the present plans will make any significant difference in the rate or quantum of tax collected.

BEPS (base erosion and profit shifting) took years to agree and eventually came up with a code that could be cherry picked and ignored at will and which almost immediately led to calls for real action.

For so long as politicians (of all colours) are reliant upon the good will of the multinationals and in their pockets, expect no real change.

Yep. Doubt much will happen to anyone using Panama, although I would really like to be wrong about this. The argument that they have not acted illegally is a bit rich considering that none of the DOTAS schemes has been proven illegal yet, but we all have our APN's. Nor do HMRC have confidence that they would be successful in court, or they'd take a case to an FTT, win it and issue us all with Follower Notices instead of this 2019 charge.

[AtW]

Really?

You don't think that saying such things is just part of the PR campaign to make the "little people" feel a bit better?

Having worked for multinationals for 20 years and seen just how ineffective HMRC (and others) are in the face of money to buy the best advisers and a quietly wielded but heavy political influence, I do not for one moment believe that any of the present plans will make any significant difference in the rate or quantum of tax collected.

Yes really. Last 20 years should not be used as indication on what will happen in next 20.

Even though I am sure multinationals will continue to dodge tax as much as they can, but they'll have to pay more than before - there is global consensus on this matter now.

Granted it will take longer than one generation to see former tax barristers sweeping the floors, but one can live and hope.

[jbryce]

Yes really. Last 20 years should not be used as indication on what will happen in next 20.

Even though I am sure multinationals will continue to dodge tax as much as they can, but they'll have to pay more than before - there is global consensus on this matter now.

Granted it will take longer than one generation to see former tax barristers sweeping the floors, but one can live and hope.

..and contractors will continue to manage their affairs in such a manner as to reduce the amount of money they contribute to HMG.

[ASB]

Retrospective dividend taxation laws on all "1 man" Ltd Co wouldn't be so surprising given their past ability to use time travel to inflict financial ruin on a group of people.

That possibility would be a worry. They have, in effect, started. I doubt there will be any for of retrospective tax as such. But is is retroactive in effect - so the impact is the same.

Many years ago there was the investment income surcharge of 15%. There was also advance corporation tax on dividends. This meant the future profits needed to be earned in order to reclaim the tax.

[DotasScandal]

They have, in effect, started. I doubt there will be any for of retrospective tax as such. But is is retroactive in effect - so the impact is the same.

Trust them to issue retrospective law after retrospective law while proclaiming that "it is not retrospective", for years to come. I am sure Gauke himself could not believe that he got away with it in 2014. They will stop only when they ARE stopped.