Originally posted by northernladuk
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Tax situation after April 2020
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Originally posted by JohntheBike View Postwell, my questions are purely academic really, as unless I have totally misjudged my client's requirements for my services, I'll be retiring at the end of this year.
Can we move to General then please?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostGreat. Thanks
Can we move to General then please?
This is why it would be good to know some actual facts rather than depending on opinions, however reasoned and valid they might seem.Comment
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Difficult to be informed on something that we don't know will happen and if it does how it will be implemented...
But the nearest example of what might happen is what has already happened in the PS. Happy reading.....'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostDifficult to be informed on something that we don't know will happen and if it does how it will be implemented...
But the nearest example of what might happen is what has already happened in the PS. Happy reading.....Comment
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For real-life examples of how it works in public sector currently, to assess how it may work if the rules are implemented as is for private sector, then the main relevant aspect I can think of is that many agencies will not want to pay into a Ltd as they need to have taken tax before that point as last supplier in the chain and will not offer you to go on their own payroll without a fee (if at all), and will push for contractors to use a third party payroll service or umbrella to isolate them from current or potential future employee rights/tax issues.
There is no benefit using the Ltd for the inside IR35 scenario only disadvantages.
Some people intending to flit between inside and outside IR35 contracts have kept the Ltd ticking over for the outside contracts and used brolly or payroll service for the inside contracts.Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.Comment
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Originally posted by Hobosapien View PostFor real-life examples of how it works in public sector currently, to assess how it may work if the rules are implemented as is for private sector, then the main relevant aspect I can think of is that many agencies will not want to pay into a Ltd as they need to have taken tax before that point as last supplier in the chain and will not offer you to go on their own payroll without a fee (if at all), and will push for contractors to use a third party payroll service or umbrella to isolate them from current or potential future employee rights/tax issues.
There is no benefit using the Ltd for the inside IR35 scenario only disadvantages.
Some people intending to flit between inside and outside IR35 contracts have kept the Ltd ticking over for the outside contracts and used brolly or payroll service for the inside contracts.Comment
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Yep, simplest approach is to continue under current terms until an extension offer comes along that takes you into and beyond April 2020.
In the meantime keep abreast of any news and developments so you can discuss the situation with the client if they look like they'll be wanting you beyond next March, so you can tell them why you won't be renewing unless terms are re-negotiated appropriately depending on what transpires by then.
Bottom line is clients will still want and need short term flexible resource so it's just the method of engagement and the associated cost that is open for change with whatever the government does to try to mess things up.Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.Comment
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Originally posted by JohntheBike View PostThanks for this. I guess many of us will have to wait and see exactly how things pan out. I'm due for a renewal at the end of June, which should take me to the end of the year, which is MyCo's financial year end. So I guess I'll have to try and establish what the client's intentions will be before the end of the year, that is if I do get a renewal and then if I'm offered one into next year. As I've said earlier, I can retire, so I'll only continue if the terms are attractive enough.
Sounds like the sort of situation that IR35, and the subsequent legislation, is trying to resolve. i.e. permietracting, instead of running a business.See You Next TuesdayComment
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Originally posted by Lance View Postdue for a renewal? or your contract ends?
Sounds like the sort of situation that IR35, and the subsequent legislation, is trying to resolve. i.e. permietracting, instead of running a business.Comment
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