You're probably not going to like this - we certainly don't

[LondonManc]

If you see how many newbies complain after their proper umbrella has deducted the correct amount of tax, you'll get some idea of the nasty shock they'll get when they realise that being a contractor really isn't about the money anymore...

Never has been for me. If we get better rates and there are fewer of us doing it because others have fled back to permiedom, great.

[pr1]

Some carry on and not realise and be left with a huge tax bill that they cannot afford

Isn't the tax going to be taken at source?

[LondonManc]

Isn't the tax going to be taken at source?

If it's implemented correctly, yes. This *is* the public sector we're talking about though.

[DotasScandal]

Never has been for me. If we get better rates and there are fewer of us doing it because others have fled back to permiedom, great.

"I'm all right, Jack...". Except you might find the story doesn't really end that way.
The endgame implies the cake going zero percent to contractors and a hundred percent to crony consultancies.

[LondonManc]

"I'm all right, Jack...". Except you might find the story doesn't really end that way.
The endgame implies the cake going zero percent to contractors and a hundred percent to crony consultancies.

Not at all. I just think that there is a different case for contractors and BoS permietractors. Unfortunately the sort of loan scheme scams that have been run have come out of poor tax laws and HMRC/HMG failing to understand the workforce within their country.

[jamesbrown]

If it's implemented correctly, yes. This *is* the public sector we're talking about though.

If it isn't taken at source, it's their problem. Remember, nothing is changing in IR35 case law, only in its administration. They are attempting to take tax at source and avoid an argument later (not dissimilar to APNs in some ways). In the unlikely event that there is an argument later, they are still going to lose if the working practices are outside. They are basically trying to circumvent the risk of due process, because that hasn't worked out too well.

[LondonManc]

If it isn't taken at source, it's their problem. Remember, nothing is changing in IR35 case law, only in its administration. They are attempting to take tax at source and avoid an argument later (not dissimilar to APNs in some ways). In the unlikely event that there is an argument later, they are still going to lose if the working practices are outside. They are basically trying to circumvent the risk of due process, because that hasn't worked out too well.

So they'll take the money first and then you've got to argue that you get it back later?

[jamesbrown]

So they'll take the money first and then you've got to argue that you get it back later?

If they take the money at source, that's going to be noticed by even the dimmest of PS permietractors who will then either accept it or move on. I really don't see them taking it to tribunal in most cases, given the costs involved. It's basically switching the incentive from HMG to the contractor, as the money is switching.

[eek]

If it isn't taken at source, it's their problem. Remember, nothing is changing in IR35 case law, only in its administration. They are attempting to take tax at source and avoid an argument later (not dissimilar to APNs in some ways). In the unlikely event that there is an argument later, they are still going to lose if the working practices are outside. They are basically trying to circumvent the risk of due process, because that hasn't worked out too well.

Remember what I said in the other thread - this is about scaring public sector agencies into implementing it. The consequence of not implementing it (for very senior civil servants) is losing their comfy office in Whitehall with a forced move to a basement office in Kings Cross.... So it will be implemented...

[jamesbrown]

Remember what I said in the other thread - this is about scaring public sector agencies into implementing it. The consequence of not implementing it (for very senior civil servants) is losing their comfy office in Whitehall with a forced move to a basement office in Kings Cross.... So it will be implemented...

Absolutely, there's very little chance it won't be implemented. But in the unlikely event that the relevant supplier fails to implement this, the actual case law hasn't changed.