report suspected abuse of IR35?

mybusiness

There aren't any glass houses because 'normal' employees have NO WAY TO AVOID TAX dear!!!!!!!!

mybusiness

That is not spiteful - it is just asking people paid a lot of money for doing exactly the same job (their compensation for not getting perks, by the way - to pay the same tax as everyone else has to - why do you feel you can avoid doing that - it is as bad as the lazy people on benefits not wanting to work at all!!!!!!!!

mybusiness

Lazy and irresponsible - if someone is aggressively avoiding tax, then it is taking money away from other government departments e.g. the NHS - which desperately need it. Just lazy and irresponsible not doing your bit - get a backbone for crying out loud!!!!!!!!

mybusiness

I am sure the person was on about limited companies avoiding tax aggressively!!!!!!!!

mybusiness

I am sure they were on about a limited company with people doing exactly the same job as the person, getting a much higher wage AND avoiding tax aggressively!!!!!!!!

mybusiness

SO, the person got the wrong name - but, maybe they aren't trying to aggressively avoid tax by working under a limited company - oh well - obviously you are !!!!!!!!

chrismac1

Maybe the last poster is working for HMRC. The £400m figure for extra tax HMRC thinks will be generated from making all "IR35 contractors" into PAYE people comes from the same utter lack of a commercial brain.

Let's take a typical well-paid contractor client of mine who currently has sales of £100k, profit before tax of £85k. Corporation tax £17k. Net drawings £68k. Extra tax on dividends for 2015-16 is £6k or so, more next tax year. Total Treasury receipts are £23k. The Treasury thinks this will double, as a £100k PAYE salary gives £45k in employee and employer NI, plus PAYE.

NOT SO!!!

As someone who used to do the costings for employee benefits in this sector for putting together fixed price bids, this guy will do very well to achieve a PAYE salary of £65k. Total Treasury receipts are now £28k.

Still 5% more, so you might think that extra £5k is a really good deal for the UK economy.

STILL NOT SO!!!

Firstly, that £5k is going to cost HMRC a load of money to get in. Given the history of IR35 since 2000, definitely more than £5k in my view. Worse still, if there is one reason why this country has created more employment in the last 7 years than all the other 28 countries of the EU combined, it is labour market flexibility. Contractors are a key part of this, nowhere more so than in the sector where most of my clients operate which is project-driven.

This will end in tears. If Osborne is daft enough to put some of the measures into next week's statement that his people have been flying in the papers, the tears will end up being his. Combined with the tax credits fiasco his hopes of the top job will be greatly reduced.

TheCyclingProgrammer

Agree with all the above, and I think Chris also forgot to mention VAT. A lot of contractors are VAT registered and in the example above would have to be so the contractor in that case would have also collected £20k in VAT, most of which (as contractors tend to have relatively low business costs) would have gone to HMRC.

Yes, true contractors and freelancers/consultants (the ones that aren't just bums on seats disguised employees) get paid higher rates - that's because they are experienced and good at what they do and often have skills that the client doesn't have. Higher compensation is as much reward for this as it is for higher risk. You could end up for months without a contract.

agrinnall

If mybusiness is going to carry on posting they really need to learn how to quote, as it's difficult to work out which reply relates to which post. Although dragging up an old thread makes me suspect it's a prelude to spam anyway.

WHA

agrinnall wrote: »

Although dragging up an old thread makes me suspect it's a prelude to spam anyway.

Newly registered user, registered only to make several posts on this thread, not made any other posts. Indeed a potential spammer, a existing user under a different user name trying to make a point (yes, maybe HMRC worker), or someone with a massive chip on their shoulders. Not actually contributed anything to the thread except some repetitive, ill-informed rants.