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And HMRC will come after them personally. The tax man isn't deterred by a company closing down.
AFAIK (correct me if I am wrong) if a company employed you but didn't pay your PAYE income tax and then closed down, HMRC could still come after you for the unpaid amount.
However, it's been shown in previous cases that it would not be up to you to prove you could supply a sub, but for HMRC to prove you couldn't. The burden of proof lies on HMRC.
From April, that would translate into HMRC having to prove that the client couldn't have got a substitute from you...
But they would be, or at least could be. The sub's company would be subcontracted for the period of the substitution to provide the sub to the OP's company, who would then provide them (under the same T&Cs) to the client. The client would still pay the OP's co the agreed rate, and the OP's co...
Yeah, I get that few would want to do this, it would be an absolute PITA (expensive, time consuming, with little chance of success). I'm thinking more theoretically, here: Would it even be possible to challenge it?
This is an idea I've been toying with, and I was wondering if anyone knew if this would work.
As a software developer, many clients (particularly larger consultancies) use a "ticketing" system (like Jira) for splitting projects down into manageable chunks. Most of these tickets should require...
If a client decides you are inside IR35, is there any way to challenge this (except for the client-led dispute process)? For instance, could you go to a FTT to argue that you should've been outside to claim back the tax?
That won't necessarily work, though. Please excuse the random tangent, but...
There is a fantasy book series I read called the Wheel of Time. In it, there are "magic" wielders called Aes Sedai. In order to make themselves more trusted in the world they take magically-binding oaths, one of which...
It's not a huge amount better with an existing contract.
In my current contract, although I discussed the reforms with both agent and client before accepting the contract and received assurances that it would be "outside", I've now heard a different story from within that nothing is decided...
I doubt even they know.
I consider it a massive risk, myself. HMRC have said they won't use it as a basis to open investigations, but I don't trust them not to change their minds.
The way I see it, if you accept an "inside" assessment when you've been working "outside", it could be perceived...
Another thing which I keep having to point out to people: Labour are highly unlikely to gain a majority themselves. If they were to form a government, they'd need the support of more moderate parties, and would most likely have to abandon or moderate their more extreme proposals.
There is not...
However, a part of the reason for this is that public sector contractors could go to the private sector with relative ease when the reforms came in. This left a massive demand from the public sector with limited supply. They had to up the rates and declare the roles outside to attract the...
That's my position: I may accept a perm role or work through a brolly in future, but not with a client I've already worked Outside with. I don't trust HMRC not to take that as proof I should have been Inside all along.
I'm currently waiting for my client to decide how they are going to proceed...
I don't see in that where they commit to scrapping, or even delaying, it. Looks like more weasel words to me (anyone who has read Robert Jordan's Wheel of Time series, it sounds like what an Aes Sedai would say).
As for "they will tax dividends as income", I don't mind that. I don't mind paying...
As I've posted elsewhere, I think the way to "fix" things is a fundamental change to income tax. Quite simply, get rid of NI (which is really just a stealth income tax) and bundle it into income tax, then tax everything the same (with a credit for corp tax already paid on dividends).
It would...