Will IT contractors be considered permanent employees after one month on site?

[OwlHoot]

From the Daily Mail

2015-11-07 Osborne to close tax loophole of staff being paid 'off the books'

Tens of thousands of middle-class professionals face a major tax hike as George Osborne clamps down on the use of controversial ‘personal service companies’.

The Chancellor is considering new measures that will force 90 per cent of those employed ‘off the books’ to go on the payroll of the organisation they work for.

The move, which could be announced in the Chancellor’s autumn statement later this month, is expected to raise up to £400million a year. ...

Probably a "KUATB" post, but not really bothered. Some of us don't avidly read every single post here, or indeed rarely anything outside General.

Come to think of it, I vaguely recall a recent thread title that mentioned £400 million a year.

Seems an utterly paltry amount to risk severely pissing off hundreds of thousands of prosperous voters, many if not most of whom are probably naturally inclined to vote Tory.

[topgazza]

My new shiny MP, first time as a MP, is horrified by these suggestions. He claims so are others . He is ex Lloyds Bank director level senior accountant and knows how valuable contractors are. Frankly it seems impractical to expect employers to take on staff on that basis unlees they intend to treat us as "zero hour employees" which in effect it is. Would it mean we would not longer be Ltd and not liable for corp tax or employers NI.... the whole things bizzare

[OwlHoot]

My new shiny MP, first time as a MP, is horrified by these suggestions. He claims so are others . He is ex Lloyds Bank director level senior accountant and knows how valuable contractors are. Frankly it seems impractical to expect employers to take on staff on that basis unlees they intend to treat us as "zero hour employees" which in effect it is. Would it mean we would not longer be Ltd and not liable for corp tax or employers NI.... the whole things bizzare

Any time the Government seems intent on pursuing a policy that will inevitably cause them far more electoral harm than good, you can be absolutely sure the EU is behind it.

In this case, no doubt, it is part of some secret EU tax harmonisation project, perhaps one they rashly signed up to years ago without much thought for the implications. We all know many EU countries loathe contractors even more than the present UK government if that is possible.

If not then it is hard to imagine how this government could be so unfathomably stupid to proceed with these changes, however desperate they are for tax revenue.

[MicrosoftBob]

Any time the Government seems intent on pursuing a policy that will inevitably cause them far more electoral harm than good, you can be absolutely sure the EU is behind it.

In this case, no doubt, it is part of some secret EU tax harmonisation project, perhaps one they rashly signed up to years ago without much thought for the implications. We all know many EU countries loathe contractors even more than the present UK government if that is possible.

If not then it is hard to imagine how this government could be so unfathomably stupid to proceed with these changes, however desperate they are for tax revenue.

Perhaps someone high up in Government has been offered cushy directorships with the big consultancies if he pushes it through, it wouldn't be the first time that thoughts of a post political career have changed policy decisions

[diseasex]

And how would that work exactly?
Company A has 10 developers. Delegates 1 of them to company B to help them and charges daily fee
Company B takes that developer on payroll? Laughable

[Andy2]

Current government's policy seem to be geared towards eliminating independent contractors and benefiting big consultancies who will fill the gap. The labour party was better for contractors. We voted tories for our own demise.

[TestMangler]

Current government's policy seem to be geared towards eliminating independent contractors and benefiting big consultancies who will fill the gap. The labour party was better for contractors. We voted tories for our own demise.

But arseholes, like DA, told us that the toriez iz da party of small bizniz and hard working families, innit.

Don't tell me the blind right wingers were lying, pleeeeassse.

[northernladuk]

Probably a "KUATB" post, but not really bothered. Some of us don't avidly read every single post here, or indeed rarely anything outside General.
.

Welcome back to the dark side. We've a section dedicated to just this so you don't need to read every post and spend too much time over here

[darmstadt]

My new shiny MP, first time as a MP, is horrified by these suggestions. He claims so are others . He is ex Lloyds Bank director level senior accountant and knows how valuable contractors are. Frankly it seems impractical to expect employers to take on staff on that basis unlees they intend to treat us as "zero hour employees" which in effect it is. Would it mean we would not longer be Ltd and not liable for corp tax or employers NI.... the whole things bizzare

Would this be the same Lloyds Bank that gives take it or leave reductions in rates to contractors?

[BolshieBastard]

We voted tories for our own demise.

Speak for yourself, please.