Will contracting go out with a bang or a whimper?

[WordIsBond]

I don't think you want to be arguing that we're office holders. Office holder = IR35 caught.

Office-holder of MyCo is not IR35 caught.

The point is, if I'm an office-holder or employee of MyCo, or if HMRC wants to try to claim I'm an employee of ClientCo, either way, there's a strong parallel between me as a contractor and my MP.

[d000hg]

The situation isn't identical, but the parallel is strong enough to show the injustice of it.

Again, I don't think so. It's a fundamental part of an MP's role to travel between London and their own constituency all the time. As a contractor, you do not have to choose to work at the other end of the country.

Personally I'm not in favour of the T&S changes but not for reasons of what's "fair" or what someone else is allowed to claim, just because it doesn't make sense.

[MPwannadecentincome]

The situation isn't identical, but the parallel is strong enough to show the injustice of it.

When the big companies can claim the expenses and we cannot, surely that is unfair as it shows bias against small companies in terms of trading and competition.

[northernladuk]

When the big companies can claim the expenses and we cannot, surely that is unfair as it shows bias against small companies in terms of trading and competition.

But HMRC don't believe we are small companies and that our clients are our main place of work so why should we get T&S to go everyday... Which normal permies don't usually get.

[northernladuk]

Office-holder of MyCo is not IR35 caught.

The point is, if I'm an office-holder or employee of MyCo, or if HMRC wants to try to claim I'm an employee of ClientCo, either way, there's a strong parallel between me as a contractor and my MP.

It's about the role you have when earning your crust at the client not within your LTD.

[WordIsBond]

It's about the role you have when earning your crust at the client not within your LTD.

Yeah, obviously I know that.

Look, you're an officeholder (director) of YourCo. Your MP is an officeholder.

He gets expenses, they are trying to say you shouldn't. It's that simple.

He has to travel, he says? So do you.

Even if you get expenses, they say you only get it for two years. He gets it for more as long as he does his "job".

He could move, of course. So could you. The ability to move is used to try to take away your expenses. Not his.

His employer does not require him to live in his constituency. If he chooses to live in his constituency (let's say Northumbria) and travel to London, how is that different from you choosing to live in Northumbria and travel to London where your company sends you to work?

He's under SDC. Government whips tell him how to do his job. If he doesn't follow along, he's likely to be out of a job before too long.

[Contreras]

His employer does not require him to live in his constituency. If he chooses to live in his constituency (let's say Northumbria) and travel to London, how is that different from you choosing to live in Northumbria and travel to London where your company sends you to work?

Are you seriously suggesting that constituents of Northumbria should travel to London if they wanted to meet their MP?

Living in/near the constituency IS very much part of the job of an MP.

It's also the rationale for second home allowances, which led to the expenses scandal, and a sore spot that's definitely worth poking at. I just wouldn't labour the point in such detail as you have.

[MPwannadecentincome]

But HMRC don't believe we are small companies and that our clients are our main place of work so why should we get T&S to go everyday... Which normal permies don't usually get.

Well, I consider the large IT companies actually to be my biggest competitor (yes other contractors may be competing too).

If I was employed as a permie by a large IT company and sent from site to site for each assignment, I would get the T&S (within the 24 month rule). Large Co would offset these T&S against profits (and tax).

Having chosen to win work by myself (though sometimes introduced by a 3rd party) and provide the same service had my competitor won it, I do not consider it fair if I cannot claim the same tax relief benefits as my competition.

In fact the "level paying field" is worsened as currently the advantage I have in not charging my client for same T&S would be taken away whereas large Co charge their clients the same T&S on top of the inflated rates for supplying those permies.

[Milkyway]

http://forums.contractoruk.com/gener...-400m-tax.html

Guys don't worry about t & s intricacies anymore
Gideon has one more plan coming up.
Read the above link.

Well, if this new proposal becomes law, then we have answer to all related threads like the current one.

Forget about 24 month rule, T & S, dive change etc, the new proposal is the "mother of all" killer proposal that will kill contracting industry overnight.

[northernladuk]

Yeah, obviously I know that.

Look, you're an officeholder (director) of YourCo. Your MP is an officeholder.

He gets expenses, they are trying to say you shouldn't. It's that simple.

He has to travel, he says? So do you.

Even if you get expenses, they say you only get it for two years. He gets it for more as long as he does his "job".

He could move, of course. So could you. The ability to move is used to try to take away your expenses. Not his.

His employer does not require him to live in his constituency. If he chooses to live in his constituency (let's say Northumbria) and travel to London, how is that different from you choosing to live in Northumbria and travel to London where your company sends you to work?

He's under SDC. Government whips tell him how to do his job. If he doesn't follow along, he's likely to be out of a job before too long.

Are you not muddying things using MP's as an example. The outcry is they are spending public money on expenses. It says nothing about them not being able to claim the tax back on it which is the situation with us. You can claim any expense you want from your LTD, you just won't be able to get the tax back on it after Apr 16.