Reply to: A tough one

[The Lone Gunman]

I think you're dreaming if you think they'll get rid of IR35. No need, not like it'll win them any more votes and it's a revenue stream they can continue collecting without any political impact.

hey it's not our idea - but we need the cash so we'll take it anyway ...

I suspect you are right, but you never know, one day a politician might actually what they promised and it may be Cameron.
As I said in another thread, I think NL will remain in power. All the chickens that were coming home to roost have been eaten for dinner by the global credit crunch. NL will blame all our woes on global issues. They will also point out that the fat cats who caused it are the sort of people the Tories look after. Cameron is a dead man walking.

[Peoplesoft bloke]

I think you're dreaming if you think they'll get rid of IR35. No need, not like it'll win them any more votes and it's a revenue stream they can continue collecting without any political impact.

hey it's not our idea - but we need the cash so we'll take it anyway ...

Sounds more likely
- bit like the fuel escalator

[snaw]

I think you're dreaming if you think they'll get rid of IR35. No need, not like it'll win them any more votes and it's a revenue stream they can continue collecting without any political impact.

hey it's not our idea - but we need the cash so we'll take it anyway ...

[Peoplesoft bloke]

Tories wouldn't touch it because they said it was unworkable.

Cameron has said that he would get rid of all marginal policies and streamline the system to reduce costs.

I hope that's true - history teaches us that things promised in opposition don't always become reality - and he'll have a really hard job persuading the Revenue and Customs wonks to stop doing silly things - but I hope he manages it.

[The Lone Gunman]

IR35 isn't a labour idea. It's a Inland Revenue one. It was offered to the Tories for years by senior civil servants. Can't see the Tories dumping it in the current climate.

Tories wouldn't touch it because they said it was unworkable.

Cameron has said that he would get rid of all marginal policies and streamline the system to reduce costs.

[Peoplesoft bloke]

..... Mark my words, IR35 is dead after 2010.

I'll be very pleasantly surprised if that comes true (provided of course they don't do their normal trick of replacing it with another tax - like they kept doing with VAT etc)

I wouldn't bet on it though.

[Bagpuss]

IR35 isn't a labour idea. It's a Inland Revenue one. It was offered to the Tories for years by senior civil servants. Can't see the Tories dumping it in the current climate.

[Platypus]

Does IR35 actually produce a net gain in taxes. I'd have thought that regular cour cases, often leading to defeat mean that the small amount it raises gets eaten away by the costs of enforcing it - although I suppose it does keep a few people in 'work'

You overlook the huge number of contractors who simply tick the box and pay up. I'm sure it generates plenty of revenue.

[TheBigYinJames]

You also have to consider admin costs that would be saved, and the message it will send out by the Tories that business rules, because it provides the economic growth that a country needs(New Lie simply do not understand this). Mark my words, IR35 is dead after 2010.

Govts rarely take saved admin costs into account when doing this sort of thing. If they did, they'd get rid of the entire means tested benefits system and just pay anyone who wants it £70 a week, which would be far cheaper than what we have now.

[Cyberman]

It's a measure designed to close a tax loophole, it may not be universally successful, but it will have increased tax revenue, so they're hardly likely to rescind it now.

You also have to consider admin costs that would be saved, and the message it will send out by the Tories that business rules, because it provides the economic growth that a country needs(New Lie simply do not understand this). Mark my words, IR35 is dead after 2010.

[TheBigYinJames]

Abolition of IR35 would actually result in increased revenues IMO.

It's a measure designed to close a tax loophole, it may not be universally successful, but it will have increased tax revenue, so they're hardly likely to rescind it now.

[Churchill]

According to the 'little red book' it was Thatcher.

Erm the last time I looked, invading someone's sovereign territory was classed as an "act of war"!

[Cyberman]

It was the fcuking Argies that started that particular rumble!

According to the 'little red book' it was Thatcher.

[Cyberman]

Definitely, the first Tory term is going to be austere indeed, so don't expect any measure which reduce revenue, such as abolition of IR35 in the short term.

Abolition of IR35 would actually result in increased revenues IMO.

[Bagpuss]

So the poorest will have to become poorer still, to pay for the excesses of the wealthy. With regret, of course. It's only fair.

I think this will be the new reality. People will have to learn to graft for their income else be poor. Where poor is not just being able to manage to pay your Sky plus subsciption.