Reply to: IR35 Guide

[jamesbrown]

A very anti-contractor podcast by Daily Mail

https://www.thisismoney.co.uk/money/... the same time

The idiot on there thinks it's a simple question of are you working for more than 1 client at the same time

That has always been the thicker-than-mince view of IR35. It's easier to imagine some simplistic thing that "sounds about right" and to go with that.

[PTP]

A very anti-contractor podcast by Daily Mail

https://www.thisismoney.co.uk/money/... the same time

The idiot on there thinks it's a simple question of are you working for more than 1 client at the same time

[darmstadt]

I honestly don't know much about IR35 but does this ring true to our experts here: Why Millennial Freelancers Are Getting Hit With Huge Tax Fines - VICE

[NotAllThere]

*Still a bannable offence to use the actual word in General?

Mentions in passing are ok. But you misspelled it, so we won't notice anyway.

[Hobosapien]

Ultimately only consumers actually pay VAT, so why don't we have a sales tax? EU Law says we have to have VAT, which is bureaucratic and stupid. I wonder if that's a coincidence...?

Has there been any reference to this by those pushing to leave the EU or are they too caught up in 'backstop hell' to think about promoting any real benefits?

Maybe they could change it so VAT registration means exempt from having to charge or pay VAT unless interacting with a non VAT registered person or entity.

One positive I see from the bxriet* shambles is the government will need to be pro-active in encouraging actual positive change to have a chance of surviving the next couple of general elections over the next 5 years or so when the reality of birext* is clear to those feeling it in their pockets.

*Still a bannable offence to use the actual word in General?

[NotAllThere]

I was lead to believe that banks at least have issues with claiming vat?

They do. They have to pay VAT, but can't claim against it.

[jds 1981]

I was lead to believe that banks at least have issues with claiming vat?

[Mordac]

What I find oddest is that the VAT take far outstrips any minor difference in 'worker tax + Ni' yet this isn't taken into consideration. The loss to the Treasury must be huge. In my case going back to permidom is costing them £20K+ year, and I was only a middle rate contractor.

Whatever you pay to HMRC would have been paid by the client, but since they paid it to you they deduct it from their own bill. Ultimately only consumers actually pay VAT, so why don't we have a sales tax? EU Law says we have to have VAT, which is bureaucratic and stupid. I wonder if that's a coincidence...?

[Mordac]

Yes... but under the defunct business entity tests if you have over 10% bad debt per year that was seen a positive. The mind boggles!

Nowhere near 10% thankfully, it was fixed price but amounted to about 3 weeks plus some expenses.

[TwoWolves]

What I find oddest is that the VAT take far outstrips any minor difference in 'worker tax + Ni' yet this isn't taken into consideration. The loss to the Treasury must be huge. In my case going back to permidom is costing them £20K+ year, and I was only a middle rate contractor.

There is absolutely no logic to the implementation of IR35, this is entirely driven by ideology and bloody-minded envy within the civil service. The irony is that most of the people involved consider themselves moderate "Blairite"/business friendly socialists or social conservatives.

[NigelJK]

What I find oddest is that the VAT take far outstrips any minor difference in 'worker tax + Ni' yet this isn't taken into consideration. The loss to the Treasury must be huge. In my case going back to permidom is costing them £20K+ year, and I was only a middle rate contractor.

[OwlHoot]

The IR35 tax changes for contractors and what they mean for you | Daily Mail Online

Nice, simple, clear and totally 101% factual.

You're welcome.

I don't usually read online comments on Daily Rooney articles, because a) They take forever to load and b) Most are by petty-minded semi-literate baboons. But there are some gems of wisdom in the comments on this article:

There is a huge backlash incoming against these changes. I suspect Boris may scrap this now that left wing idiot hammond and his fairness rubbish have gone

Rumour is that Gordon Brown was lobbied by the big IT consultancies to bring in IR35 in order to kill off the UK independent IT contractor! It's taken 20 years but it's going to do exactly that. Businesses will suffer financially if they go down the consultancy route by paying far more per IT 'expert'.

In the overall scheme of things the tax difference between employees and Ltd Co contractors is negligible with the differential varying depending on how much you earn. The biggest perceived loss to HMRC is employers NI contributions (a tax of jobs) which has been increased by stealth by successive governments whilst at the same time corporation tax has been cut. The resulting difference is hardly the fault of the contractors. Just cut out all the complication, merge tax and NI and go for a flat tax rate would be more worthy of consideration. People who get income from shares without getting out of bed on a morning could then pay their fair share too. You know, the people with all the wealth and power.

[ShandyDrinker]

"no entrepreneurial risk"

So the client "consultancy" declaring bankruptcy owing me £7k wasn't a risk?

Yes... but under the defunct business entity tests if you have over 10% bad debt per year that was seen a positive. The mind boggles!

[Mordac]

"no entrepreneurial risk"

So the client "consultancy" declaring bankruptcy owing me £7k wasn't a risk?

[woohoo]

So from reading that article, I just to have more than one client in a year and im gold.