What is everyone going to do assuming HMR&C and Osborne get their way?

[DimPrawn]

Evolve my business model.

You mean claim JSA and watch porn.

[alphadog]

My guess is the 1 month thing will be watered down a bit. There are rumours that the end client will be able to confirm arrangements after 1-3 months to allow status quo.

But if they bring in a rock solid 1 month limit and eliminate entrepreneurs relief, then it's DOOM DOOM DOOM!

[Pondlife]

The agency will have you over a barrel come PAYE time, why on earth would they convert your contractor rate into a salary? Being an employee of the agency will mean sick/maternity, pension and over costs. My gut feel is your take home will halve at this point. Take it or leave it.

Who wants to go through this hassle each time you change client?

Why do you think this? The demand isn't going anywhere. Why would they not simply engage you via their newly formed brolly company. Everything is PAYE so no comeback on them or the client.

[diseasex]

You mean claim JSA and watch porn.

You mean do porn?

[LucidDementia]

You mean claim JSA and watch porn.

I might mean that.

Or I might mean that the reality of any problem in business is an opportunity for something.

[DimPrawn]

My guess is the 1 month thing will be watered down a bit. There are rumours that the end client will be able to confirm arrangements after 1-3 months to allow status quo.

But if they bring in a rock solid 1 month limit and eliminate entrepreneurs relief, then it's DOOM DOOM DOOM!

From the govt point of view, it's a success. You lose your house, it's repossesed to the bank, who sell it to a wealthy Tory landlord, who rents it to some Syrian "refugees" at the tax payers expense. Win-win.

[DaveB]

I'll be looking closely at how they they intend to cover those working with multiple clients. There has already been a statement made that those having multiple clients would not be caught by the changes but no indication how they would apply this. How many clients counts as multiple, over what time period, what happens if I go from 3 clients to one, to two then back to three in the course of a year?

If three contractors get together and invoice eachother for a days work every month, would that count as multiple clients?

Still lots of questions to be answered.

[LucidDementia]

My guess is the 1 month thing will be watered down a bit. There are rumours that the end client will be able to confirm arrangements after 1-3 months to allow status quo.

But if they bring in a rock solid 1 month limit and eliminate entrepreneurs relief, then it's DOOM DOOM DOOM!

The conjecture round here based on articles in unreadable newspapers astonishes me.

Things will never be as bad as suggested; the £400 million being bleated about is nonsense. Yes, they may gain it in PAYE thefts but how much will they lose from agencies/consultancies who go out of business, the impact that could potentially have on the benefits system etc etc

I suggest everyone calms down a bit and wait and see.

[d000hg]

From the govt point of view, it's a success. You lose your house, it's repossesed to the bank, who sell it to a wealthy Tory landlord, who rents it to some Syrian "refugees" at the tax payers expense. Win-win.

The tories don't like BTL landlords or Syrian refugees though.

Can we stay vaguely on some sort of sensible discussion though, it's quite interesting.

[meridian]

For many of my clients, going on the payroll means having to have a grade. The existing grades have specified upper and lower pay limits, so to convert from contractor rates to payroll would mean the clients would need to either set up a specific "contractor" grade, or would lower all contractor rates to fit inside the grades.

I'll be looking at the legislation closely to see where the possible loopholes are, and going with those. Either setting up / joining a consultancy, setting up offshore, forming an LLP, or similar.

Having to pay PAYE is not the issue for me (I'm well into the higher rate bracket anyway and pay the full whack of tax personally), but lowering my rate to an employee's rate would be commercial suicide.