Originally posted by northernladuk
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SDC proposals leaked?
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Originally posted by LisaContractorUmbrella View PostThat makes me feel quite young - I don't know why
I think you were correct in one of your earlier posts. The most likely outcome I can see is something contractual between agent and contractor stating that the contractor will pay themselves paye. The agent would then report to hmrc.That would be the least disruptive whilst raising most tax.
Can't see contractors on client books for a whole host of reasons. And most likely not on agency books either. Anything like that would result in lots of ftc and employed consultant roles springing up. Clients would soon get peed off with the outcome.Comment
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Originally posted by GB9 View PostAnyone under 50 is a chick in my book.
.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostPoor Salma Hayek. Loses her chickness in 9 monthsComment
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Originally posted by GB9 View PostAnyone under 50 is a chick in my book.
I think you were correct in one of your earlier posts. The most likely outcome I can see is something contractual between agent and contractor stating that the contractor will pay themselves paye. The agent would then report to hmrc.That would be the least disruptive whilst raising most tax.
Can't see contractors on client books for a whole host of reasons. And most likely not on agency books either. Anything like that would result in lots of ftc and employed consultant roles springing up. Clients would soon get peed off with the outcome.
I think the intention will be to pass responsibility for determination to the end client - if SDC is used in the future for IR35, they would really be the only ones to make the call - how can an agency or umbrella company decide whether or not the end client will be retaining the right of SDC? Doesn't make sense and HMRC obviously want the determination moved from the contractor so that would IMHO be logical. I assume that the end client would sign a statement one way or another by putting a tick in an agency form and then a line would be added to the agency reporting requirements which would notify HMRC of the contractor's status; then liability would lie with the end client if they falsified the statement or with the agency if they didn't take the statement or ignored it and with the contractor if they ignored itComment
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Originally posted by LisaContractorUmbrella View PostI am fairly sure that you cannot indemnify or insure against a tax debt so, if the contractor declares no SDC and offers clientco some sort of indemnity but the liability for status determination and therefore the potential tax debt lies with the client, it won't be worth anything.
I don't know how it works, but presumably the contractor is the beneficiary and it pays out to him if he gets hit with an IR35 tax bill. I don't see any reason that the engager couldn't be made the beneficiary instead, if legislation put the engager on the hook.
No engager would accept indemnification from the contractor (too easy for contractor Ltd to fold), but I could see them accepting an insurance policy to cover their liability.
Cost of the insurance could become a point of negotiation between contractor and client.Comment
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Originally posted by LisaContractorUmbrella View PostThen I shall carry my 'chick' title with pride for a while anyway.......
I think the intention will be to pass responsibility for determination to the end client - if SDC is used in the future for IR35, they would really be the only ones to make the call - how can an agency or umbrella company decide whether or not the end client will be retaining the right of SDC? Doesn't make sense and HMRC obviously want the determination moved from the contractor so that would IMHO be logical. I assume that the end client would sign a statement one way or another by putting a tick in an agency form and then a line would be added to the agency reporting requirements which would notify HMRC of the contractor's status; then liability would lie with the end client if they falsified the statement or with the agency if they didn't take the statement or ignored it and with the contractor if they ignored it
Of course things like income shifting etc would end. There'd be no way around shifting dividends, or salaries.Comment
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Originally posted by MarkT View PostSo this scenario wouldn't necessarily mean the end for contracting, it'd mean we are all caught by IR35. But would we still then keep out T&S? It'd make a huge difference if we were.
Of course things like income shifting etc would end. There'd be no way around shifting dividends, or salaries.Comment
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If we kept T&S and were able to shift salaries (as there are no dividends) then it probably wouldn't kill me. My wife doesn't work as we have three kids, 2 of which have autism, so the killer will be not using her tax rate anymore, well on top of everything else of course.
I am dreading the 24th, hopefully any changes beyond T&S won't take place until tax year 17/18 though....?Comment
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