Reply to: Inside IR35 - keeping LTD

[BrilloPad]

Greedy overrides common sense.

The current changes (as with the initial changes 20 odd years ago) add annoyance, panic and desperation to that greed.

Added together it makes this a great time for those schemes as people desperately try to keep their income as it currently is.

And HMRC love that. They seem quite happy with the situation.

[eek]

Are people stupid or greedy? Or both?

I would like to see HMRC go after the promoters(and multi-nationals) with the same vigour they go after individuals.

And retrospection should be made illegal.

Greedy overrides common sense.

The current changes (as with the initial changes 20 odd years ago) add annoyance, panic and desperation to that greed.

Added together it makes this a great time for those schemes as people desperately try to keep their income as it currently is.

[BrilloPad]

Are people stupid or greedy? Or both?

I would like to see HMRC go after the promoters(and multi-nationals) with the same vigour they go after individuals.

And retrospection should be made illegal.

[cojak]

The issue is that where money is concerned, people can believe two opposing views, both at the same time, when it should be one or the other.

Quantum finance*, if you like.

See this for instance https://www.contractoruk.com/forums/...ml#post1062346

Really, what can you say?


*TM cojak

[eek]

And I notice that everyone has chosen to ignore your post and that rather inconvenient fact.

People do have a habit of completely ignoring their own historic mistakes all I can do is hope that posting it here ensures a few people think and don't join such schemes.

As for that HMRC scheme enquiries thread - I think people are ignoring everything and anything anyone says and rather than calming down and thinking they are often (angrily and accidently) creating far bigger messes for themselves down the line...

[cojak]

Oh it will be... People are greedy and the problem is outlined in this post from Friday in the Scheme Enquiry forum alongside my reply which explains the leap that most people don't grasp..

And I notice that everyone has chosen to ignore your post and that rather inconvenient fact.

[simes]

Thanks I was beginning to think it was me - how can people not grasp this simple stuff?

Wait until you see the clients not understanding this simple stuff and then maybe it will have a wider context.

[Pring]

Why would a small company make a determination - unless they are supplying you to a large company...

They wouldn’t, so the determination still lies with the worker/PSC. The small company pays gross and the PSC makes deemed payment.

[eek]

If you are working on a a contract for a small company who haven’t had to make a determination but you’ve assessed it as IR35 then wouldn’t you still use the deemed payments calculation? My understanding was that if you’re working for a small company then nothing’s changed.

Why would a small company make a determination - unless they are supplying you to a large company...

[Pring]

If you are working on a a contract for a small company who haven’t had to make a determination but you’ve assessed it as IR35 then wouldn’t you still use the deemed payments calculation? My understanding was that if you’re working for a small company then nothing’s changed.

[eek]

You’d better believe it.

Oh it will be... People are greedy and the problem is outlined in this post from Friday in the Scheme Enquiry forum alongside my reply which explains the leap that most people don't grasp..

It was my agency paying them my money!!

Thanks for the post though as it explains to me why people fell for the schemes and why I instantly ran away from them.

Although it's hard to believe when you are in a scheme the first thing you do on entering a scheme is sign away the fact the money you earn is yours.

Because of the agreement you made with the scheme, the agency pays the scheme (not you) the money for the work you did. Due to that agreement that money wasn't yours, it was theirs and some of it was then paid to you as salary, the rest was then put into a trust and from there passed to you...

[cojak]

Thanks this is interesting - this looks (as quite a few people have observed) like the source of the next loan charge style fiasco.

You’d better believe it.

[Peoplesoft bloke]

Discussed back in December and earlier this week at https://www.contractoruk.com/forums/...-payeworx.html

And there will be a lot of these type of schemes. There is a lot of money to be made from unaware agencies and contractors at the moment.

Thanks this is interesting - this looks (as quite a few people have observed) like the source of the next loan charge style fiasco.

[eek]

OK so this gang reckons they have a "solution" to keeping your LTD PSC but they seem a bit cagey about saying what it is

wwwdotpayeworx.co.uk/ir35/ - IR35. What does it actually mean?

Discussed back in December and earlier this week at https://www.contractoruk.com/forums/...-payeworx.html

And there will be a lot of these type of schemes. There is a lot of money to be made from unaware agencies and contractors at the moment.

[Lance]

OK so this gang reckons they have a "solution" to keeping your LTD PSC but they seem a bit cagey about saying what it is

wwwdotpayeworx.co.uk/ir35/ - IR35. What does it actually mean?

sounds like they'll take your money. Then pay it to your LTD minus their fee.
Quite why you'd want to do that I don't know. You might as well take it into your personal hands and invest into your LTD. Total waste of time.

There's probably plenty of gullible idiots who'll try it though.... *cough* loan charge *cough*