Email from David Morris MP on the AS

[MarkT]

He may not be ignored but I think the government has a plan that it is adamant in pursuing whatever the consequences. We've probably seen the worst possible version leaked to the press and will get a milder version tomorrow (which, like others, I speculate will be in a Consultation doc), in the spirit of pretending to compromise.

So this email I got, seems to have been proved truthful.....I am in shock...

[Zero Liability]

Dunno - it'd be a rather stupid chancellor who ignored the Self Employment dude telling him he's about to lose more cash by making these cuts than if he left it alone.

Lets be honest, UK plc will not gain by this, it'll lose.

He may not be ignored but I think the government has a plan that it is adamant in pursuing whatever the consequences. We've probably seen the worst possible version leaked to the press and will get a milder version tomorrow (which, like others, I speculate will be in a Consultation doc), in the spirit of pretending to compromise.

[MarkT]

It'll probably merit the "that's nice, dear" treatment from Gideon.

Dunno - it'd be a rather stupid chancellor who ignored the Self Employment dude telling him he's about to lose more cash by making these cuts than if he left it alone.

Lets be honest, UK plc will not gain by this, it'll lose.

[Zero Liability]

OK, thanks. I don't want to pour cold water on this, but it would be surprising if DM, as self-employment ambassador, hadn't spoken to his colleagues in HMT shortly after those stories hit, so he probably knows more than that e-mail would imply. Otherwise, he knows very little, and that would tell you something about how HMT are approaching this.

It'll probably merit the "that's nice, dear" treatment from Gideon.

[chopper]

It would be lovely to get a situation where contracting is for contractors and permatemps get to/must use umbrellas or go perm. It needs a different sledgehammer to crack it and perhaps if Gideon explained to both the CBI and IPSE what his intentions were, it could be that some sensible suggestions get made.

So IPSE could propose stiffing us all with their FLC idea, or the CBI show that they really CBA in helping contractors?

With friends like them...

[LondonManc]

It would be lovely to get a situation where contracting is for contractors and permatemps get to/must use umbrellas or go perm. It needs a different sledgehammer to crack it and perhaps if Gideon explained to both the CBI and IPSE what his intentions were, it could be that some sensible suggestions get made.

[jamesbrown]

You could be right, although he could have just not replied. He's on record now saying that he backs IPSEs case.

I think that maybe the response has stalled them and it's more consultations, to be honest, we will know tomorrow.

Yep, agreed. I think he's working pretty closely with IPSE, so definitely onside in a general sense.

Anyway, thanks for posting this.

[MarkT]

OK, thanks. I don't want to pour cold water on this, but it would be surprising if DM, as self-employment ambassador, hadn't spoken to his colleagues in HMT shortly after those stories hit, so he probably knows more than that e-mail would imply. Otherwise, he knows very little, and that would tell you something about how HMT are approaching this. Also, he's probably focusing on the thrust of what you're asking about (a worst case scenario w/r to IR35) and not on the details or on associated proposals (T&S, for example), even though you mentioned these.

I'd be very happy to be proven wrong tomorrow, but I would fully expect T&S changes to be announced and, in the best case scenario, a further consultation on a specific proposal w/r IR35 (FWIW), with a view to implementing something by April 2017 and not before.

DM has identified the need for "simplification" of IR35 and recently wrote an article about a new system of taxation for self-employed workers (probably the FLC) about which he was talking to HMT.

You could be right, although he could have just not replied. He's on record now saying that he backs IPSEs case.

I think that maybe the response has stalled them and it's more consultations, to be honest, we will know tomorrow.

[jamesbrown]

Sure

OK, thanks. I don't want to pour cold water on this, but it would be surprising if DM, as self-employment ambassador, hadn't spoken to his colleagues in HMT shortly after those stories hit, so he probably knows more than that e-mail would imply. Otherwise, he knows very little, and that would tell you something about how HMT are approaching this. Also, he's probably focusing on the thrust of what you're asking about (a worst case scenario w/r to IR35) and not on the details or on associated proposals (T&S, for example), even though you mentioned these.

I'd be very happy to be proven wrong tomorrow, but I would fully expect T&S changes to be announced and, in the best case scenario, a further consultation on a specific proposal w/r IR35 (FWIW), with a view to implementing something by April 2017 and not before.

DM has identified the need for "simplification" of IR35 and recently wrote an article about a new system of taxation for self-employed workers (probably the FLC) about which he was talking to HMT.

[MarkT]

Thanks for that. Would you mind posting your original e-mail (removing identifying info, of course)?

Sure:

Hi David,

I understand you are working on some changes or proposals for IR35. There have been some media reports recently regarding effectively removing IT Contracting as a career, by outlawing PSCs.
I am sure that this is just speculation, as it would of course mean a net loss for UK plc in tax receipts. There appear to be several measures being drawn up that remove the ability to work as a small businessman in the UK.
Expenses are being withdrawn, meaning I have to work nearer home, my dividends are being taxed at a rate meaning a 10% tax hike and now, it appears I must work as if I am permanent after 1 month with a client! This means of course that my client will be liable for my NI and will have to supply me with a permanent employment contract.
Most companies want a flexible workforce, the move to continually increase taxation on small businesses like me and my peers is taking away our livelihoods, as well as vastly increasing costs for our clients.


Please could I ask you to speak to the Chancellor on behalf of the 250,000 contractors in the UK to ensure that this story is just that, a story?

Thanks and Best Regards

[jamesbrown]

Thanks for that. Would you mind posting your original e-mail (removing identifying info, of course)?

[MarkT]

So, it could all be a ruse to distract us from the dividend tax bad news?

Either way, we've got an ally and a man who sees sense.

[LondonManc]

So, it could all be a ruse to distract us from the dividend tax bad news?

[MarkT]

So I emailed the good MP Mr Morris and just received the following reply, and no it's not a wind up!


Thank you for your email.

I have not heard any rumours in the House that these changes are a foot. I have only seen unsubstantiated claims in the media.

I have written to the Chancellor on behalf of IPSE to ensure that these rumours are not correct and if they are I have explained how negative the changes will be on business.

I will await the response from the Chancellor on this issue.

Yours Sincerely


David Morris MP
Morecambe and Lunesdale
House of Commons
London
SW1A 0AA