Thursday...
So I read on Linkedin that this Thursday HMRC will release the most anticipated tool...
- 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!
Reply to: Agency up front about IR35 status
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 "Agency up front about IR35 status"
Collapse
-
Originally posted by RonBW View PostYou are James Brown and I claim my five pounds.
Leave a comment:
-
Originally posted by jamesbrown View PostI think that's what eek means. A long and boring (depending on your persuasion) history can be found here:
Do contractors need limited companies? :: Contractor UK
Leave a comment:
-
Originally posted by teapot418 View PostGood explanation here
Do contractors need limited companies? :: Contractor UK
"Up until the mid 1970s many contractors provided their services as self-employed workers taxed under Schedule D. Then came S38 of the Finance (No 2) Act 1975 which provided that individual contractors who contracted with agencies would, under certain conditions, be subject to PAYE and tax under Schedule E. As a result most contractors who used agencies formed their own limited companies so that it was their company rather than themselves individually which then contracted with the agency, and thus the application of S38 was avoided. Although S38 of the Finance (no 2) Act 1975, which is now S134 of the Income and Corporation Taxes Act 1988, never applied to all individual contractors (i.e. non-limited company contractors) who used agencies, in practice it was in the agencies' interest to assume that it did and to apply PAYE across the board unless a limited company was used. It was also extremely difficult for the contractor to challenge this. Recent legislation has, however, changed the situation so that contracting direct with an agency (without a limited company) and being taxed under Schedule D is now again a practical possibility for some contractors, including for some contractors who, if they contracted using a limited company, would come within IR35."
So not banned as such, but made impractical.
If you're contracting direct, and the client is happy, it is still possible to be SchedD self employed.
True there are exceptions if you go direct but equally its a very limited part of the market and you are usually better off using a limited company...
Leave a comment:
-
Good explanation here
Do contractors need limited companies? :: Contractor UK
"Up until the mid 1970s many contractors provided their services as self-employed workers taxed under Schedule D. Then came S38 of the Finance (No 2) Act 1975 which provided that individual contractors who contracted with agencies would, under certain conditions, be subject to PAYE and tax under Schedule E. As a result most contractors who used agencies formed their own limited companies so that it was their company rather than themselves individually which then contracted with the agency, and thus the application of S38 was avoided. Although S38 of the Finance (no 2) Act 1975, which is now S134 of the Income and Corporation Taxes Act 1988, never applied to all individual contractors (i.e. non-limited company contractors) who used agencies, in practice it was in the agencies' interest to assume that it did and to apply PAYE across the board unless a limited company was used. It was also extremely difficult for the contractor to challenge this. Recent legislation has, however, changed the situation so that contracting direct with an agency (without a limited company) and being taxed under Schedule D is now again a practical possibility for some contractors, including for some contractors who, if they contracted using a limited company, would come within IR35."
So not banned as such, but made impractical.
If you're contracting direct, and the client is happy, it is still possible to be SchedD self employed.
Leave a comment:
-
Originally posted by RonBW View PostWas it banned? I thought that it was just that legislation was introduced which meant that if you didn't pay the right tax the agency became liable for it and so the agency would generally now by custom refuse to engage a self employed worker.
Do contractors need limited companies? :: Contractor UK
Leave a comment:
-
Originally posted by eek View PostThat was banned back in the 70's due to Agencies abusing self-employment.
Leave a comment:
-
Originally posted by m0n1k3r View PostSomebody really ought to lobby the government to make it possible to contract as self-employed. It is commonplace (and financially beneficial) elsewhere, just not in the UK.
Leave a comment:
-
Originally posted by m0n1k3r View PostSomebody really ought to lobby the government to make it possible to contract as self-employed. It is commonplace (and financially beneficial) elsewhere, just not in the UK.
Hence there is no chance we could be self employed....
Leave a comment:
-
Originally posted by eek View Post+1 but it would be interesting to see the end clients view when you point http://forums.contractoruk.com/publi...companies.html at them...
Leave a comment:
-
Originally posted by jmo21 View PostFirst time I've seen a contract advertised where they are up front about the new PS IR35 stuff:
"Please be aware the client has decided this role is within IR35 legislation so the options are to switch to umbrella or have tax deducted at source and take home NetPay."
for a .net developer, £290-£300 per day, South Manchester, 6 Months
Leave a comment:
-
Originally posted by NORTHMAN View PostHah! For the last couple of weeks, one of the questions from agents has been "Why do you want to leave your current contract?", and my answer has been "Because if my current client decides we're inside, then with the taxes and loss of travel and accomodation expenses I'd be no better off than if I took a permie role somewhere."
Not all newbie posters are created equal
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: