And the first leg is removed

[cojak]

I can't see any benefit to running a ltd anymore for the contractor either?

Of course there is - you don't have the worry of the umbrella doing a midnight flit going into administation before you get paid. With a Ltd you still have ultimate control of your money.

[BoredBloke]

Of course there is - you don't have the worry of the umbrella doing a midnight flit going into administation before you get paid. With a Ltd you still have ultimate control of your money.

Along with a lot of hassle and ever moving goal posts

[eek]

Along with a lot of hassle and ever moving goal posts

Rule 1 of contracting get the money under your own control asap

[BoredBloke]

Rule 1 of contracting get the money under your own control asap

It might be under your control but you are only keeping an ever increasing chunk of it safe for HMRC

[youngguy]

Of course there is - you don't have the worry of the umbrella doing a midnight flit going into administation before you get paid. With a Ltd you still have ultimate control of your money.

Does that offset the effort though I wonder?

I guess if you are on weekly time sheets the risk exposure is only a couple of K.

[missinggreenfields]

What about pension payments?

You don't make any. You have no expenses. If you incur an expense, you are trading illegally under the new rules.

Go to jail. Do not pass go. Do not collect your salary as a disguised employee etc.

[youngguy]

You don't make any. You have no expenses. If you incur an expense, you are trading illegally under the new rules.

Go to jail. Do not pass go. Do not collect your salary as a disguised employee etc.

So let's say I am a PS contractors on 500pd (10k pcm).
I lose 4-5k in tax (??) At source
That leaves me c5k to personally live on and pay for my business expenses (unless I no longer need insurances etc) AND make personal pension payments ......wow

Tell me I am wrong and have missed something!

[westtester]

So let's say I am a PS contractors on 500pd (10k pcm).
I lose 4-5k in tax (??) At source
That leaves me c5k to personally live on and pay for my business expenses (unless I no longer need insurances etc) AND make personal pension payments ......wow

Tell me I am wrong and have missed something!

I doubt that clients will want to forego business insurance, I was told to provide £5m liability cover for my current role! I can't believe I could do that much damage....

[youngguy]

I doubt that clients will want to forego business insurance, I was told to provide £5m liability cover for my current role! I can't believe I could do that much damage....

But I am not a business, I am a disguised employee - the Chancellor told me so!

[DotasScandal]

I am wrong and have missed something!

Yes. The fact that the Government doesn't want us contractor vermin to continue contracting. We are expected to clear the field for "Business" to take over... by "Business", we mean the big cartels that Gauke & friends love so much, the ones that get HMRC "sweet deals" and who Ms. May wants to keep happy.
It's a textbook case of disincentivization - they simply make individual contracting so unattractive that either new people don't the enter field, and old timers say "ah, f* it, it's just not worth the hassle anymore".