Dust settles - what happened?

[TheFaQQer]

The legal definition of companies most contractors have is a closed company.

A closed company is one that is no longer trading. A close company, OTOH, is a limited company with five or fewer participators, or a limited company of which all the participators are also directors.

[SueEllen]

A closed company is one that is no longer trading. A close company, OTOH, is a limited company with five or fewer participators, or a limited company of which all the participators are also directors.

Thanks

[DotasScandal]

Going where?
Not sure you realise but all countries have rules/laws etc, some more and some less draconian than this one.

All countries have laws all right... but you'll find that it's mostly the UK that haz fuzzy laws that are subject to constant "clarification" (reinterpretation), retrospective or otherwise.
In the vast majority of first world countries, laws are pretty clear cut and you know where you stand at any given time.

[MeMeMe1966]

how they would work out additional tax?

1) start with companies in 2017/18 that submit VAT return but no corporation tax in their 2017/18 company accounts submission.

2) check pre 2017/18 PAYE RTI submissions of these companies to find employees/directors

3) check 2017/18 PAYE & NI payments against these employees/directors

4) compare this amount against a calculation of the outside IR35 tax revenue (you would have to make an assumption around likely expenses based on historical returns)

[AV101]

People are moving away from the point of this thread - anyone get any real world examples of what has happened/is happening as it has all gone quiet?

My personal feeling (guess) is that most have taken the hit and carried on bau.

[NewDan]

Personally I've been able to carry on as per pre-April 6th. My client used the tool to help them decide whether my role, and other technical and PM roles, were classed as inside or out. Thankfully it showed that we were outside of IR35. They took legal advice on the results of the tool, have worked with the agencies that supply contractors here and even re-ran the tool when it was updated just recently; still out. This is without any fiddling or anything, just an honest appraisal of the working practices for the roles evaluated. It has caused masses of work, undue stress and worry for the programme manager especially.

The only thorn in the otherwise rosy result is that my agent has added a paragraph to our contract trying to pass liability for unpaid taxes - in the event of any investigation - onto the contractor, discussions are ongoing as to how this will be worked out.

I know of another large PSB that has effectively ignored the tool and used consultation with QDOS and close working with the PSB's one agent to class all contractors as outside.

[oliverson]

Going where?

Not sure you realise but all countries have rules/laws etc, some more and some less draconian than this one.

I'll head to Spain (if they still have me). It's one thing knowing the rules before you join in but another changing them mid-way through and to your detriment. If the revenue kill my business then my view is they won't see another penny of the £ 50k+ I currently generate for them each year.

[Andy Hallett]

People are moving away from the point of this thread - anyone get any real world examples of what has happened/is happening as it has all gone quiet?

My personal feeling (guess) is that most have taken the hit and carried on bau.

A lot have, yes. I am just working through the exact numbers.

[AV101]

A lot have, yes. I am just working through the exact numbers.

And this will be the stick used to beat the rest of us in the private sector. Game, set and match to HMRC.

[youngguy]

People are moving away from the point of this thread - anyone get any real world examples of what has happened/is happening as it has all gone quiet?

My personal feeling (guess) is that most have taken the hit and carried on bau.

Based on the area's I know it is fairly evenly split:
Many who saw this coming left just after Xmas

A proportion (funnily enough the contractors who had been in the same role for 4 or 5 yrs) bent over and accepted it.

I think it is still too early to say what the long term effects are for roles, rates and so on. Most of those who accepted it don't actually know how much they will lose and are waiting for the pay slip!

Just based on my own personal experience and those I know in the game.