Originally posted by malvolio
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Government to consult on tax avoidance in the private sector"
Collapse
-
-
Originally posted by BoredBloke View PostBig companies have PSL of agents. The agents get to deal with the contractors 500 invoices and then bell the client. The client may have 500 contractors but has only a handful of invoices from the agents.
What companies buy from agencies is risk mitigation and the best available staff on their books (ha ha...), not processing efficiencies.
Leave a comment:
-
fair play by the government
why only Public sector contractors affected by this, let all the contractors be under one rule.
Leave a comment:
-
Originally posted by PerfectStorm View Post
Not quite sure what they mean by that. Since the liability lies with the agents, they would have to open an enquiry at that level and not the client?
Leave a comment:
-
-
Originally posted by Maslins View PostPerhaps...but why don't big companies use those big consultancies for everything now? Presumably because whilst individual contractors may be a bit more hassle (500 contracts and 500 invoices/month instead of 1), it'll be significantly cheaper for them.
When it comes to corporate tax, the big corps are evidently prepared to sail fairly close to the wind. Presumably at least partly because they're confident their lawyers are better than HMRC's and/or they check the legal small print very carefully to ensure they stay just the right side of the law. So they're happy to take a bit of a risk there to save some money. Why would it be any different for the situation we're talking about?
Leave a comment:
-
Originally posted by Fred Bloggs View PostI think I'd really struggle with an unfettered RoS. The reason my skills are in demand is that almost nobody these days has the specific combination of 40+ years experience and industry knowledge in my particular speciality. Everyone else I know has retired or semi retired and works only when they feel like it. So, I am in demand. But - Who the heck would I sub to?
They would have taken someone else on. You happened to be the best fit (skill/price/availability etc) in the client's eyes at the time of interviews. Even if the second best fit is half as good as you and twice the price, they would still take him/her on if the alternative is not doing the project at all.
So, they are already open to the idea, in principle, of you not performing the role personally. The trick to substitution is convincing the client that you have a better idea of an appropriate substitute than any agent.
Leave a comment:
-
Originally posted by GreenMirror View PostDo you have a link to that?
Leave a comment:
-
Originally posted by TonyF View PostThe evidence document that HMRC commissioned has some intersting stats that could be used to help fight the rollout. For example 44% of public sector bodies said that the new rules cost them more than before, 32% of public sector bodies said it was harder to fill vacancies now, 23% of sites said that CEST was not helpful ect ect.
Leave a comment:
-
It's probably worth also noting that the majority of contracts I've seen in the public sector recently including those at HMRC have declared themselves outside of IR35.
Leave a comment:
-
The evidence document that HMRC commissioned has some intersting stats that could be used to help fight the rollout. For example 44% of public sector bodies said that the new rules cost them more than before, 32% of public sector bodies said it was harder to fill vacancies now, 23% of sites said that CEST was not helpful ect ect.
Leave a comment:
-
Originally posted by swamp View PostNotice how his 'PSC' is not registered for VAT. That's just totally unrealistic, unless it's normal for Project Manager roles to pay £230 per day.
To be fair, what they were trying to do was create a simplified illustration with as few variables as possible. By leaving VAT out, and by setting the total contract at £50K (so there is no higher rate tax) it keeps it simple. That's really what they should be doing. But Pension AE is mandated by law and affects taxation so it really should be included.
The real problem is not that they set the rate low in their illustration, or failed to include the impact of pension contributions. The real problem is that their preferred solution, while it narrows the "tax gap", means the contractor ends up with less take-home than the employee, even though it is the employee that gets full employment rights.
Leave a comment:
-
Originally posted by madame SasGuru View PostHMRC regard VAT as revenue neutral so the quickest way of seeing your response is utterly ignored is to talk about VAT. Even charities and public sector contracts have special ways to treat VAT which mean they are not as awkward as you believe they are.
Agree that public sector sometimes have some treasury agreement, but investment banks don't!
Leave a comment:
-
Originally posted by swamp View PostNotice how his 'PSC' is not registered for VAT. That's just totally unrealistic, unless it's normal for Project Manager roles to pay £230 per day.
Meanwhile HMRC are very quiet about trousering the extra 20% from all finance, insurance, charity, and public sector contracts.
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: