Increasing HMRC revenue via IR35 changes is flawed

[andydd68]

You will not go perm. You will continue as a contractor inside IR35 and that will increase their tax take

Well..maybe...a quick glance on here or Twitter shows many people are in same boat as me, that is, large gaps between contracts, many have had roles finish last year and have yet to find a new one, early retirement, work abroad or even sign-on...unless situation changes I plan to work a minimal amount, sign on in-between roles maybe..the tax take HMRC will be getting from me will definitely decrease...not to mention the knock on effect..not need for ltd company, banks account, accountant, etc

[LondonManc]

I've heard a rumour that the low-hanging fruit are expected to be included in the revenue figures. They regard low-hanging fruit, apparently, as those that have been at a client over two years and are now accepting an inside IR35 contract, logic being that were self-determining incorrectly and have actually always been inside IR35.

[eek]

I've heard a rumour that the low-hanging fruit are expected to be included in the revenue figures. They regard low-hanging fruit, apparently, as those that have been at a client over two years and are now accepting an inside IR35 contract, logic being that were self-determining incorrectly and have actually always been inside IR35.

You mean https://twitter.com/KenBarnett15/sta...38731441963009

I expect it's going to be a lot more than just them...

[mockedguy]

I have been a perm for 7 years, a contractor for 10 and a recruiter for 3. I assure you, in most cases, inside iR35 still pays significantly more than perm equivalent. Indeed I was inside IR35 and was offered perm but declined having calculated an income drop of 23%.

Yes, I worked out I would lose around 15% net going perm, and also not have all the hassle of accountants, insurances and the risks.

But my questioning was about their reasoning behind how what I have been paying the govt will decrease by around 50%. I did some more detailed calcs and they will get even less from me, around £26,000pa less, if I switch to perm. Crazy.

[dsc]

[...]and they will get even less from me, around £26,000pa less, if I switch to perm. Crazy.

How much more NI would you pay in a perm position?

[mockedguy]

People should read CUK more

Really? Who says? I've seen this throw at other come-and-go posters as well. Sorry, I've got a life outside of IT and the net, and don't have time to spend my own life trawling daily through every post to keep people like you happy (and yes, I always do a search before posting).

any new poster comes along who has no idea

Pretty arrogant comment to make about someone you know nothing about. I was probably contracting in IT when you were still at school (see, we can all do it). I've done the calculations many times before, and got my accountants to do them, but always from the point of view of whats best for me. This time I was doing them from HMRCs point of view, as I had heard its all about collecting tax that "contractors" are avoiding, which is clearly not true.

One of the problems in IT is the number of judgemental people who think they are superior and 'judge' others based on a few snippets of info without knowing anything about them.

[BrilloPad]

Really? Who says? I've seen this throw at other come-and-go posters as well. Sorry, I've got a life outside of IT and the net, and don't have time to spend my own life trawling daily through every post to keep people like you happy (and yes, I always do a search before posting).


Pretty arrogant comment to make about someone you know nothing about. I was probably contracting in IT when you were still at school (see, we can all do it). I've done the calculations many times before, and got my accountants to do them, but always from the point of view of whats best for me. This time I was doing them from HMRCs point of view, as I had heard its all about collecting tax that "contractors" are avoiding, which is clearly not true.

One of the problems in IT is the number of judgemental people who think they are superior and 'judge' others based on a few snippets of info without knowing anything about them.

Its not me you should try to keep happy. It is yourself. And I think you mean contented rather than happy.

If you don't want to keep up to date then fine. You don't need to read every post - just dip in occasionally. I went permanent last year having contracted on and off since 1988. Out of those 30+ years I was contracting ~27 years. I could see which way things were going due to my research on CUK.

Sadly your post is quite typical of the permietractor who does nothing to help anyone else. You reap what you sow.

[LondonManc]

You mean https://twitter.com/KenBarnett15/sta...38731441963009

I expect it's going to be a lot more than just them...

Ah, that sounds like what someone paraphrased. There will be plenty from a Resource Solution database extract who are at just DB and Barclays to keep HMRC busy for years without needing to go beyond the general rule suggested in that tweet.

SELECT * FROM Employees /* LOL */
WHERE Type  = 'Contingent Worker' 
AND StartDate < '2018-04-06'
AND EndDate IS NULL
AND ContractStatus = 'Inside'

[mockedguy]

Out of those 30+ years I was contracting ~27 years. I could see which way things were going due to my research on CUK.

Long time. I've been an IT contractor longer than that, a lot of it overseas, not to mention a number of periods as a perm. I've always found times like this are a sort of natural culling process of contractors and agencies. I can see my accountants cr*pping themselves we are all going to go perm. Things will sort themselves out and pick up. The demand for IT skills will only increase.

Sadly your post is quite typical of the permietractor who does nothing to help anyone else. You reap what you sow.

Surprised you would state that after looking at your post history.

[LondonManc]

Can't beat a good dick-swinging comp on CUK. Very professional.