Reply to: New IR35 Guidance hot off the presses

[BlasterBates]

We don't know how this is going to pan out. But the enquiry letters will be darkening the door mats fairly soon. In other words wait 6 months and keep a close eye on the PCG website for news. Either there will be alarm bells ringing as the PCG is inundated with claims or it's business as usual, i.e. there ramping up means they investigate 30 contractors a year instead of 15.

[northernladuk]

Interesting. In current client, anyone who doesnt have PCG insurance coverage or similar is just mad.

I've got standard PCG but considering upgrading to Plus to avoid all the hassle if it comes my way.

Could be worth it bearing in mind you start worrying just because the client sends you an email

[psychocandy]

I do believe there could be a crack down.

This happened in Germany. For years nothing much happened on disguised employment and then suddenly they got serious. I think most freelancers had to deal with it. Not to say that you all get caught but you may have to think about it seriously.

That's why I think it would be very wise indeed to looks at your working practices and get them sorted out.

We'll wait and see...could be a damp squib of course, but I would certainly have the antenna out.

The following makes sobering reading

HMRC

Emphasises that HMRC are ramping this up seriously.

Interesting. In current client, anyone who doesnt have PCG insurance coverage or similar is just mad.

I've got standard PCG but considering upgrading to Plus to avoid all the hassle if it comes my way.

[LisaContractorUmbrella]

I think it just all depends on how woolly the definitions end up being - if past history is anything to go by they should be as clear as mud

[Chugnut]

I think that is the case for a LOT of contractors out there...

In my 12 years experience, this is not the case. We may well influence some technology decisions which end up being adopted or manage a project outsourcing the support desk, but that's hardly controlling and directing the activities of the organisation (as a whole).

The Student Loans guy was a clear example. He could be said to be generally steering the ship. Me recommending software package A over software package B would hardly equate.

[scooby]

Seriously, how many of their 40% of IT contract staff are going to be "senior" enough to: ...

I think that is the case for a LOT of contractors out there...

[Chugnut]

Seriously, how many of their 40% of IT contract staff are going to be "senior" enough to: -

"control and direct the activities of the organisation – for example members of the senior management team"

Less than 1%?

It's got more holes than a Swiss cheese convention.

[BlasterBates]

I do believe there could be a crack down.

This happened in Germany. For years nothing much happened on disguised employment and then suddenly they got serious. I think most freelancers had to deal with it. Not to say that you all get caught but you may have to think about it seriously.

That's why I think it would be very wise indeed to looks at your working practices and get them sorted out.

We'll wait and see...could be a damp squib of course, but I would certainly have the antenna out.

The following makes sobering reading

http://www.pcg.org.uk/cms/index.php?...ews&Itemid=995

Emphasises that HMRC are ramping this up seriously.

[LisaContractorUmbrella]

New rules to tax state PSC contractors as employees :: Contractor UK

Makes you wonder doesn't it Scooby Where will it all end?

[scooby]

Start of the witch hunt??

New rules to tax state PSC contractors as employees :: Contractor UK

[JamJarST]

Just to be picky, the national average is aound £28k. Add the various overheads and the cost of employment to support that wage is pretty much £45k...

Yeah that is exactly my point, a person on the "average" is not going to be that keen to give up and live on JSA.

[malvolio]

Yeah I know there is but generally those people are on much less than £180 a day. Don't forget that that is a gross income of over £45k per annum which is much higher than an average "wage".

Just to be picky, the national average is aound £28k. Add the various overheads and the cost of employment to support that wage is pretty much £45k...

[JamJarST]

There are a lot of people who won't travel 10 miles to do a job let alone do a 120 mile return journey.

Yeah I know there is but generally those people are on much less than £180 a day. Don't forget that that is a gross income of over £45k per annum which is much higher than an average "wage".

[SueEllen]

Do you really think someone on £180 a day will sit on JSA??

There are a lot of people who won't travel 10 miles to do a job let alone do a 120 mile return journey.

[LisaContractorUmbrella]

BBC News - Tax effort stunted by job cuts, say MPs

So we already know they are clamping down (trying to) on MSCs, but what gets me is comments like this:



No, some of us are trying to run a business and build it up.



Those working in the public sector may not be there long... Soon will come the day they realise they have no skills available and that the contractors they once relied on are either charging more or "not available"

What is it that these people dont get? Perviously, didnt the Conservatives prompt small business / entrepreneurism?

Do you think they got their M's and their P's mixed up? MSC's were outlawed donkeys years ago