Results of the public sector consultation is up

[DaveB]

If you're in an inside IR35 PS gig for the whole 12 months of your financial year and need PI/PLI and an accountant, pray tell how you report a profit.

You don't, you report a loss for the year and carry it forward to offset against profits the next year and reduce your corporation tax bill.

[LondonManc]

You don't, you report a loss for the year and carry it forward to offset against profits the next year and reduce your corporation tax bill.

Exactly my point. But at what stage, if you're always in PS, does that kick in?

[northernladuk]

If you're in an inside IR35 PS gig for the whole 12 months of your financial year and need PI/PLI and an accountant, pray tell how you report a profit.

Grow some and go get other gigs. You have a choice you know.

[DaveB]

Exactly my point. But at what stage, if you're always in PS, does that kick in?

Don't always be in the PS. Or try and pick up some work on the side (which might actually put you back outside depending own how the rules are enforced).

Behave like a business and respond to changing market conditions rather than just sitting back and being being shafted.

[LondonManc]

Don't always be in the PS. Or try and pick up some work on the side (which might actually put you back outside depending own how the rules are enforced).

Behave like a business and respond to changing market conditions rather than just sitting back and being being shafted.

I'm fine, I've never been in PS, just wanted to see what NLUK's compassionate answer would be.

[MoroccanMole]

A Directory is legally obligated to manage a company in a responsible manner and spending all available revenue on employee remuneration whilst failing to set-aside sums for the running of the business leading to becoming insolvent do not appear to be responsible actions.

[LondonManc]

A Directory is legally obligated to manage a company in a responsible manner and spending all available revenue on employee remuneration whilst failing to set-aside sums for the running of the business leading to becoming insolvent do not appear to be responsible actions.

So, not working within IR35 gigs then?

What would you suggest, that the director reinvests the PAYE earnings as capital?

[DaveB]

A Directory is legally obligated to manage a company in a responsible manner and spending all available revenue on employee remuneration whilst failing to set-aside sums for the running of the business leading to becoming insolvent do not appear to be responsible actions.

Under IR35 anything paid to the company is treated as Deemed Income and legally has to be paid as salary subject to PAYE to the individual doing the work. That legal obligation trumps the directors obligation. Paying what you are legally obliged to pay is more responsible than not obeying the law and risking legal penalties and fines as a result.

If the director is not happy about that then the company should seek revenue from alternative sources not caught under IR35.

[MoroccanMole]

So, not working within IR35 gigs then?

What would you suggest, that the director reinvests the PAYE earnings as capital?

I am in the Private Sector (Construction, not IT) so maybe I have a few more years grace, but beyond that who knows. Perhaps Private Sector Clients will be more careful about how they operate with clearly defined in/out arrangements.

As far as the Public Sector goes, it depends if the current incumbents roll-over and accept paying more tax or stand-firm. As has been pointed out before, if you were faced with 75% of your usual day-rate, or zero%, it is a no brainer. I won't be holding my breath for all these IT Contractors to make a stand.

In the short term I intend to try to maximise my earning position as best I can in readiness for future changes to come. Perhaps I will sail a little closer to the wind with respect to tax planning if I know my LTD has a limited shelf life, no pun intended.

[youngguy]

So they send a holding statement out and everyone slates them for a crap response. If you know it's not a full response and therefore no real use why do you want one. Waste of everyone's time.

Well they get slated whatever ! But imho Bette to say 'we are on it, watch this space and we plan to say more in x days' than nothing at all