Reply to: Food For Thought T&S

[MrMarkyMark]

In the small consultancy I've recently worked with, their permie consultants have to pay the first £150 of their monthly expenses out of their own pocket. This was agreed with HMRC, so don't think they get away with it scot-free.

Did the consultancy roll over for HMRC?
I wouldn't be happy with this at all, especially as a permie.

[gables]

This is what really annoys me. While I don't like it, paying more tax doesn't enrage me. What does is HMRCs insistence that our companies are somehow different. I'd argue that they're not different, they're just smaller.

All this will really achieve is making companies harder to run (the entirety of IR35 does this and needs to be put in the bin) and makes it more difficult for us to expand our small business as we have a tulip ton of legalisation to understand rather than just focusing on growing our companies.

Sure, many of us are just planning to be one man companies ( not myself ) but I don't see why they shouldn't be able to incoperate to their advantage when others are able to. The line should be drawn at the obvious point of incorporating not some vague HMRC defined line in the sand.

And then to make in more insulting, through in the term 'disguised employee'

[fool]

I really don't see why it is OK for a small consultancy with several staff to legitimately claim T&S, but for a one man ltd co consultancy it will no longer be legit. It makes me mad.

This is what really annoys me. While I don't like it, paying more tax doesn't enrage me. What does is HMRCs insistence that our companies are somehow different. I'd argue that they're not different, they're just smaller.

All this will really achieve is making companies harder to run (the entirety of IR35 does this and needs to be put in the bin) and makes it more difficult for us to expand our small business as we have a tulip ton of legalisation to understand rather than just focusing on growing our companies.

Sure, many of us are just planning to be one man companies ( not myself ) but I don't see why they shouldn't be able to incoperate to their advantage when others are able to. The line should be drawn at the obvious point of incorporating not some vague HMRC defined line in the sand.

[TykeMerc]

In the small consultancy I've recently worked with, their permie consultants have to pay the first £150 of their monthly expenses out of their own pocket. This was agreed with HMRC, so don't think they get away with it scot-free.

That could very easily be an arrangement so that they don't have to fret about personal use of things like fuel cards or some other "benefit". I've worked on and off for years with a 5 man band in production engineering and they get their expenses back in full, they can't see any reason that will change, I had coffee there the other day and we discussed it.

One absurdity is that they're trying to differentiate the one man contractor from a small business that may only hire staff now and then (which a one man consultancy may well do, I certainly have in the past I'm sure a fair few CUK posters have). The logical extension to that is the FLC idea which the delightful IPSE clowns have handed them, a lovely easy way to differentiate, legislate and set rules just for contractors without upsetting the "genuine business" applecart, all the accusations of unfairness go away too.

[cojak]

I really don't see why it is OK for a small consultancy with several staff to legitimately claim T&S, but for a one man ltd co consultancy it will no longer be legit. It makes me mad.

In the small consultancy I've recently worked with, their permie consultants have to pay the first £150 of their monthly expenses out of their own pocket. This was agreed with HMRC, so don't think they get away with it scot-free.

[PurpleGorilla]

I really don't see why it is OK for a small consultancy with several staff to legitimately claim T&S, but for a one man ltd co consultancy it will no longer be legit. It makes me mad.

[TykeMerc]

For me whatever the tax is on £1500 a month.

£1,500 - £2,000 average here, unsustainable for obvious reasons. If nothing else it takes up a LOT of the tax band before the upper rate kicks in, if it's liable for tax it must be included in tax banding.

Now or retrospectively?

Fair question given past history, fortunately there's been no indication of a possible retrospective element, but I'm sure at one point the NTRT folks felt that way, no way to have any certainty.

[oracleslave]

It'll all become clear soon enough - who ever heard of the government not providing absolute clarity in the rules?

Now or retrospectively?

[SpontaneousOrder]

For me around £800/m travel

For me whatever the tax is on £1500 a month.

[PurpleGorilla]

Depends on how big a part T&S play in running your business; it may just end up making the "flexible" labour force that much less flexible. Combined with the new dividend tax it could have a rather nasty hit.

For me around £800/m travel

[Zero Liability]

Got it, come April 2016 were farked

Depends on how big a part T&S play in running your business; it may just end up making the "flexible" labour force that much less flexible. Combined with the new dividend tax it could have a rather nasty hit.

[PurpleGorilla]

So it does still affect us, but it's not targeted at freelancers.

Got it, come April 2016 were farked

[fidot]

So it does still affect us, but it's not targeted at freelancers.

[LisaContractorUmbrella]

The confusion here has come because there have been 2 T&S consultations going on at HMRC - one involves contractors specifically and one involves the workforce at large. HMG decided that the whole issue of T&S expenses needed looking at but that intermediary workers was their main priority - that's why the situation will change for contractors in April next year but not the population at large. I think the article the OP referred to is concerned with the 'majority' consultation

[TheFaQQer]

I read the CW article but I confused as hell.

If I take a trip to a client site from my home-office (registered address) - can I still claim the miles.

If not, WTF not!

It'll all become clear soon enough - who ever heard of the government not providing absolute clarity in the rules?