IR36 - Pay dividends now?

That retained profit.

I guess you could vote a dividend in this financial year that takes the retained profit down to nil - so something close. You could then lend it back to the company and might even be able to pay yourself a little interest.

Consultation my @rse

Anyone read Private Eye - great cartoon this issue, Tony Bliar at one of his new Consult the Community meetings, voice from the audience says "Resign" Phony replies "NO!" Consultation over :lol

One of my roles as a Permie had a similar consultation story, all employees were told how bad the company was doing and we were asked to "agree" to a 4% pay cut - the directors were taking a 5% pay cut :b

We all had to sign the pre written letter and send it back to allow them to go through with it :rolleyes

Big Companies, Big Govt = Big Pile of Doggy Doos

Re: Re:IR36

I was once part of "consultation" process - this was due to firm decision of the company that took over my ex-employer to sack everyone but due to number of people they had to do this "consultation" - they indeed "consulted" us, suggesting us to come up with viable ways of saving business that they completely screwed by that point (overly expensive IT install that did not work, courtesy of some crappy company from Canada (or USA) and one Big Well Known Consulting Company who "knew" the product).

Anyway, the most interesting aspect of this "consultation" was that they clearly made decision to sack us all but for legal reason they had to go through process of consultation and they could not say the decision before "consultation" ended - if this "consultation" is anything to go by then its clear that the decision has been made and they just need some talk to later claim that they "consulted".

Re: Re:IR36

"consultation"

Heeee he hah hooooo ho gheeee hha haha heeeee heee hoooo hahh ehhehe gumph fehghe hheheee hhhahah hhooooooooohheeee hha grraaaa hhahahha.....

Re: Re:IR36

Oh bollocks.

I have retained earnings from before IR35 which I was planning to pay out over the next couple of years, assuming I don't work. It hadn't occurred to me these might be caught.

Quick you accountants, dream up a scam (err.. scheme) so I can keep my cash.

Re: Re:IR36

The consultation period occupied 5 minutes last Sunday morning at 3 a.m.

The new rules will come in on April 6th 2004 and be backdated to 1066.

Re: Re:IR36

Do people really think that the rules are going to change from the next TY. The general comments (from professionals) on the announcement seem to be of view that (like IR35) HMG hasn't actually decided what to do and is conducting 'consultation' Is that process really only going to take 2 months with new rules ready to start in April 2004 or are we more likely to seed a consultation process starting in April 2004?

What do people think?

tim

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Re:IR36

I think that the Budget will be in March next year, so pay yourself a dividend before then, as any new laws are likely to apply from Budget day onwards.

Of course GB could always say its to apply from December 2003 as he "told" us then.

I've been reading in the General forum about the so called 'IR36' proposed in the Pre Budget Report.

I'm sure you all know what it says by now.

When IR35 was introduced, we had a consultation period and a further period of time during which the new law was being implemented. During this time we were able to reorganise our business affairs.

Is this likely to be the case again with any new tax rules?

Or is it possible that the new rules will come into force this April?

If the later, should I be paying all the company profits out as dividends now to avoid additional rules applying to them?