Reply to: The Official 2018 Budget DOOM thread

[Dhrucku]

Accountants, recruitment agents, contactor mortgage specialists, there is a whole eco system that has grown around contractors over the years. If HMRC get there way and contracting is no longer viable for the majority, what will happen to that industry? I bet none of that is accounted for when HMRC are rubbing their hands together with glee at all the extra tax they are going to get.

It’s amazing if HMRC hasn’t considered this.

Isn’t it the case that HMRC couldn’t care less about these industries?


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[Guvernator]

...and also - what about the accountants?

Surely they're going to be hit by all these PSCs winding up?


I'd have thought they'd have had enough collective clout to have lobbied the govt to prevent this mess

Accountants, recruitment agents, contactor mortgage specialists, there is a whole eco system that has grown around contractors over the years. If HMRC get there way and contracting is no longer viable for the majority, what will happen to that industry? I bet none of that is accounted for when HMRC are rubbing their hands together with glee at all the extra tax they are going to get.

[Lance]

At best they will reduce corp tax, but we won't get the benefit because they will increase dividend tax rates (as Tory Scum did already just recently).

Labour would increase both.

Maybe that was a tad optimistic

[AtW]

And maybe a future government might change the dividend tax regime to encourage investment.

At best they will reduce corp tax, but we won't get the benefit because they will increase dividend tax rates (as Tory Scum did already just recently).

Labour would increase both.

[Lance]

Seems to be a lot of people on here throwing in the towel before this has even started.

Let them. Once all the disguised employees are paying the correct tax, and HMRC can report >99% compliance, then we can get on with being contractors.
HMRC will close down most of the IR35 investigation teams.
And maybe a future government might change the dividend tax regime to encourage investment.

[pjt]

After the changes I expect to be working outside IR35 as I currently do in the public sector.
If your truly outside get your clients educated now so they understand what they are paying for and can accurately do the test.

Seems to be a lot of people on here throwing in the towel before this has even started.

[Lockhouse]

I'd hope to remain outside otherwise it's early retirement for me.

[jamesbrown]

I've been watching this thread with interest and was just wondering if anyone else is thinking the same as me?

Foot to the metal for the next 18 months and then take the entrepreneur's relief on what I've managed to accrue in my Ltd co. account.

I mean, if we are being forced to go through a brolly (and, who knows, we don't know how this will pan out) we will no longer have use for our Ltds? Or are we going to keep them for those rarer than hen's teeth gigs that have been declared outside IR35 with all the attendant admin and accountant's fees to keep them running?

Contingencies, contingencies.....

I'll be interested to see whether HMG change their opinion about the operation of the TAAR in the TiS legislation w/r to what it means to be engaged in a trade or activity, within a two year period, that "is the same as, or similar to" the one on which a capital distribution is being sought, specifically how they interpret "activity" and how it relates to a person doing exactly the same thing, only switching to a brolly in order to gain a tax advantage. So far, they've been reasonably clear that this would not be caught. So far.

Either way, if they see this behaviour ramping up (or a risk of it), I expect they will close it down pretty quickly.

[New Modeller Army]

...and also - what about the accountants?

Surely they're going to be hit by all these PSCs winding up?


I'd have thought they'd have had enough collective clout to have lobbied the govt to prevent this mess

[New Modeller Army]

The Way Forward?

I've been watching this thread with interest and was just wondering if anyone else is thinking the same as me?

Foot to the metal for the next 18 months and then take the entrepreneur's relief on what I've managed to accrue in my Ltd co. account.

I mean, if we are being forced to go through a brolly (and, who knows, we don't know how this will pan out) we will no longer have use for our Ltds? Or are we going to keep them for those rarer than hen's teeth gigs that have been declared outside IR35 with all the attendant admin and accountant's fees to keep them running?

Contingencies, contingencies.....

[Hobosapien]

The country is lucky to have us! We are so valuable and extremely qualified, if anything we don't get paid enough! Am I right guys?!

Yep. If other nations were alert they'd offer us incentives to move abroad. Brain Drain 2.0.

[genius]

As usual a strange and contrived load of rules from the HMRC. Only really here in the UK could we be contemplating such a mess. I'd imagine some agencies will be looking of their shoulders as contractors just pack it in. If there's no benefit contracting but all of the risk then nobody is going to do it.
What if I'm 1/2 way through my contract and my client becomes a medium business? With Brexit also in the air, I wouldn't be surprised if a good number of contractors head overseas.

The country is lucky to have us! We are so valuable and extremely qualified, if anything we don't get paid enough! Am I right guys?!

[TheScheduler]

As usual a strange and contrived load of rules from the HMRC. Only really here in the UK could we be contemplating such a mess. I'd imagine some agencies will be looking of their shoulders as contractors just pack it in. If there's no benefit contracting but all of the risk then nobody is going to do it.
What if I'm 1/2 way through my contract and my client becomes a medium business? With Brexit also in the air, I wouldn't be surprised if a good number of contractors head overseas.

[woohoo]

95% of bums on seat contractors are inside ir35, thats a fact
Rest 5% will also be deemed inside ir35 by hmrc when investigated,
hmrc make the rules

I’m impressed you managed to get your made up stats to add up to 100, well done you.

[pjt]

95% of bums on seat contractors are inside ir35, thats a fact
Rest 5% will also be deemed inside ir35 by hmrc when investigated,
hmrc make the rules

That's not what's happening in the public sector at the moment.