Budget 16th March 2016

[DonkeyRhubarb]

From April 2017, where the public sector engages an off-payroll worker through their own limited company, that body (or the recruiting agency if the public sector body engages through one) will become responsible for determining whether the rules should apply, and for paying the right tax.

So, anyone using a tax avoidance scheme, rather than a Ltd Co, will not be affected.

[Waldorf]

I wonder if they are clamping down on contractors in the public sector, see how it goes, see if it works, if it is effective, with a view to extend it to the private sector in the future?

[WordIsBond]

I wonder if they are clamping down on contractors in the public sector, see how it goes, see if it works, if it is effective, with a view to extend it to the private sector in the future?

Of course that is what they are doing.

And the Lifetime ISA is setting up to kill private pensions. Next year or the year after, they'll say, "Well, everyone on basic rate can do just as well or better with the Lifetime ISA, so it's really only the rich who are using private pensions now. They don't need tax relief."

[TheFaQQer]

I wonder if they are clamping down on contractors in the public sector, see how it goes, see if it works, if it is effective, with a view to extend it to the private sector in the future?

Yep.

In the past, the Treasury have been told that making it work like this would kill the industry. So this is their chance to show that they were right and everyone else was wrong.

[DaveB]

Yep.

In the past, the Treasury have been told that making it work like this would kill the industry. So this is their chance to show that they were right and everyone else was wrong.

A lot will hinge on the clients and agencies reaction to being liable for employers NI and collecting PAYE.

It will also depend on exactly what the employment status tests turn out like. For all that people loathed them, the BET's were so badly put together than most people could score a medium or low risk with a little bit of effort, and could back it up with status reviews from QDOS et al.

[SueEllen]

Of course that is what they are doing.

And the Lifetime ISA is setting up to kill private pensions. Next year or the year after, they'll say, "Well, everyone on basic rate can do just as well or better with the Lifetime ISA, so it's really only the rich who are using private pensions now. They don't need tax relief."

There are more people over 40 than under and it's the people between 40-54 who put the most in their pensions. This age group also votes....

[WordIsBond]

There are more people over 40 than under and it's the people between 40-54 who put the most in their pensions. This age group also votes....

Oh, he's a LONG-TERM kind of guy, didn't you listen?

People over 40 can't even open a LISA, right? So what's he going to do? Why, take pension relief away for people under 40 -- and then the next year, for those under 41, and so on. "I'm not taking pensions away or changing anything for anyone who is even remotely close to retirement. They can keep their pension." But the savings will go into his forecasts, etc.

[CornishYarg]

So, anyone using a tax avoidance scheme, rather than a Ltd Co, will not be affected.

That figures, but.. what kind of scheme have you in mind?

[SueEllen]

Oh, he's a LONG-TERM kind of guy, didn't you listen?

You mean he doesn't want to be attacked when he's PM like Brown about his pensions raid and abolishing the 10p tax rate.

[DonkeyRhubarb]

That figures, but.. what kind of scheme have you in mind?

I was only joking of course. Using a scheme these days is