Help with tax please

[malvolio]

Didn't OP say he is a through an agency so the Self Employed option won't fly.

Nope, it's all to do with who is going to get sued for unpaid taxes. The liability passes up the chain away from the worker to the next incorporated entity in the chain (the underlying assumption being that an individual worker can't pay his own taxes unaided so will either forget paying them or ignore doing so.). YourCo or the umbrella fill the same purpose in that context, they are the intermediary that safeguards the agency, or the end client if you're direct. Hence, you can't do it as a Schedule D self-employed worker.

[eek]

Nope, it's all to do with who is going to get sued for unpaid taxes. The liability passes up the chain away from the worker to the next incorporated entity in the chain (the underlying assumption being that an individual worker can't pay his own taxes unaided so will either forget paying them or ignore doing so.). YourCo or the umbrella fill the same purpose in that context, they are the intermediary that safeguards the agency, or the end client if you're direct. Hence, you can't do it as a Schedule D self-employed worker.

That is incorrect in so many ways I don't know where to begin.

However, the reason why self employed via agencies is banned is to avoid workers being abused and forced to work as self employed rather than as employed. See Employment Protection (Consolidation) Act 1978 for the details. The Hansard debates around the act make for interesting and scary reading considering the world at the time....

[malvolio]

That is incorrect in so many ways I don't know where to begin.

However, the reason why self employed via agencies is banned is to avoid workers being abused and forced to work as self employed rather than as employed. See Employment Protection (Consolidation) Act 1978 for the details. The Hansard debates around the act make for interesting and scary reading considering the world at the time....

That is incorrect in so many ways I don't know where to begin.

It matters not why the legislation came into being (IR35 stems from the same lack of knowledge of business reality), the effect is as stated. 99% of agencies and clients will both insist on using intermediaries to avoid liability for taxation and employment rights. That they are wrong is irrelevant.

[eek]

That is incorrect in so many ways I don't know where to begin.

It matters not why the legislation came into being (IR35 stems from the same lack of knowledge of business reality), the effect is as stated. 99% of agencies and clients will both insist on using intermediaries to avoid liability for taxation and employment rights. That they are wrong is irrelevant.

Actually that just shows how much you are wrong (and why you are always continually wrong). History is important as it explains how come we ended up with service companies in the first place and why we ended up with the current IR35 mess.

I notice that an element of being caught out has crept into your thoughts. You started with an absolute statement yet you are now down to 99%. Are you sure you're cut out for arguing against someone who actually knows and can read the law?

[northernladuk]

[malvolio]

Nope, not interested. Effects are more relevant than causes. The background to the legislation is hopelessly more complicated than a single regulation and goes back to before 1978.