Does anyone else feel like they are being financially ripped by the tax-man

[BrilloPad]

It's fair™

Like your moderating decisions....

[eek]

Ah.. that stuff he's going to lose a hell of a lot of if the worst does happen. Gotcha

But he hasn't worked out how to avoid it and is now doing things that aren't logical (a contract review when you know the clients viewpoint) because - panic

Why are you getting a contract review done. Hand your notice in and get the f**k out of there.

+1 - it's irrelevant as the client has said they wanted and have employed a temporary employee. The OPs only escape route is to leave NOW and pray that HMRC doesn't come knocking which they may not given HMRC will only really have the appropriate evidence if the OP remains working there past March.

Some money coming in now versus 25% of the last 4 years of income which equals 2 years of post 2020 taxed income - I know what I would be doing and it isn't staying..

[Manic]

J*s*s H Ch*ri*st the self entitlement is strong here. Are you having to consider selling the Lambo and reducing the school fees?

This is the new world order, adapt and survive. Have you thought about selling up and moving closer to your market?

[cojak]

There's more than one contractor I know who has PM'd the build of their own new houses - to a man they are the most embedded into clients that I've seen.

Since I no longer work with the clients, I have no idea how they are taking the IR35 changes.

But I've got a fair idea...

[andydd68]

£500 * 220 = £110,000.

If you feel "financially raped" by paying tax on that, then boo bloody hoo. Try working 40 hours a week for £15,000 like a lot of people have to.
Societal greed is sickening.

Cant help but agree, my roles have been in the £150-£200 range so Its hard to feel pity for those on £500 + per day, thats a hell of a lot of tax, HMRC (assumes) it is missing out on.

Also arguing against IR35 on a purely financial argue wont win many friends (especially if your friends are earning £20k a year) a better argument is surely that the changes are having unintended (!?) consequences, destroying the contract market, unemployment, early retirement, loss of corp tax, closure of ltd cos etc.

As mentioned in the Lords review thingie, many contractors acknowledge the scenario they are in and would be happy to pay an extra premium/tax but the reforms are too heavy handed..

[GummiBear]

All very true. The OP might have had a justified rant but now turns out he's actually exactly why HMRC have done this. 3 months turned in to 4 years and you just carried on regardless. It's no wonder they think we are just disguised permies.

If I were you I'd be more concerned that you are right at the very top of HMRCs hit than complaining about all the taxes and money you are going to lose by going inside....which arguably you should done all along.

4 years in and not a hope of passing an inspection, the the client confirms it and no insurance. Jeez, they will think they've hit the jackpot.

Why are you getting a contract review done. Hand your notice in and get the f**k out of there.

Permies aren't threatened with the sack every 3 months, emails sent out that you will be leaving on x date, handover to different teams - then whatever internal politics where not able to do so etc

But he hasn't worked out how to avoid it and is now doing things that aren't logical (a contract review when you know the clients viewpoint) because - panic



+1 - it's irrelevant as the client has said they wanted and have employed a temporary employee. The OPs only escape route is to leave NOW and pray that HMRC doesn't come knocking which they may not given HMRC will only really have the appropriate evidence if the OP remains working there past March.

Some money coming in now versus 25% of the last 4 years of income which equals 2 years of post 2020 taxed income - I know what I would be doing and it isn't staying..

The main reason for carrying on is advice from my accountant and also HMRC recently published statement that they won't be going after previous years.
As surely, I'm not the only caught in this predicament, there must be 10'000's of contractors if not more, who have been with the same client for many years and are continuing inside IR35 post April. I can't imagine everyone is leaving post April?
The client has simply used the HMRC CEST tool - which has been widely reported as flawed and will pretty much always give a inside IR35 verdict.

J*s*s H Ch*ri*st the self entitlement is strong here. Are you having to consider selling the Lambo and reducing the school fees?

This is the new world order, adapt and survive. Have you thought about selling up and moving closer to your market?

Oh dear, you have no idea, yes my lambo is a 11 year old car with 210k miles, still the old girl has been quite reliable. I've only started earning this rate on this contract. I had been out of work for 6 years and only in recent years have turned my life around. First contract, I was on £150 p/d with agency taking half. Please don't make such comments when you have no idea of the persons circumstances. Oh and kids go to state school. And no I can't just up-sticks and move as have family members who are dependent on me.

[NotAllThere]

Like your moderating decisions....

I think HMRC are even worse than us. Hard as that may be to believe.

[eek]

Permies aren't threatened with the sack every 3 months, emails sent out that you will be leaving on x date, handover to different teams - then whatever internal politics where not able to do so etc



The main reason for carrying on is advice from my accountant and also HMRC recently published statement that they won't be going after previous years.

HMRC's advice is time limited - it always says this year meaning the tax year 2020-21.

HMRC don't actually need to do anything until April 2024 - that gives them a lot of time to go after year without breaking their "word".

Edit - but the decision is all yours - we are just giving you our opinion - albeit an opinion based on watching HMRC for a lot of years and observing exactly how they operate and their very careful use of words that mean different things to them then they do to the general public (fraud being a word that HMRC regard as a far more general term than people on here think it means).

[LondonManc]

Cant help but agree, my roles have been in the £150-£200 range so Its hard to feel pity for those on £500 + per day, thats a hell of a lot of tax, HMRC (assumes) it is missing out on.

Also arguing against IR35 on a purely financial argue wont win many friends (especially if your friends are earning £20k a year) a better argument is surely that the changes are having unintended (!?) consequences, destroying the contract market, unemployment, early retirement, loss of corp tax, closure of ltd cos etc.

As mentioned in the Lords review thingie, many contractors acknowledge the scenario they are in and would be happy to pay an extra premium/tax but the reforms are too heavy handed..

This is the key bit for me. Getting tax relief on travel and accommodation makes it a double whammy for most. Inside should mean that you have to pay yourself PAYE through your own company to the tune of, say, half of the day rate revenue from the month. While that may seem like a hassle, it could all be connected up with a decent accounting package linked to your company account and sumbit a compliance report to HMRC and/or whoever your company is paid by to prove that you are operating correctly.

[Lance]

Permies aren't threatened with the sack every 3 months,

Neither are good suppliers.....