IR35 stays...

[Nixon Williams]

Is that for sure? Merging would effectively put tax & NI on dividends paid. IR35 puts it on entire turnover. Assuming your company spends more than the 5% on other things, the Treasury is still better off with IR35.

The Budget papers state that they are looking at merging the operation of income tax and NIC, so this may not be a full merger as first thought.

It was also announced that NIC would not in effect, be extended to interest and dividends.

So any form of merger does not seem to impact on how IR35 operates in any way.

[SorenLorensen]

So really, at the end of the day, nothing has changed. All the promises by the government, all the talk from the PCG, has had zero effect. Marvellous. Be very interesting to see what the PCG do now, given the failure of them to have any effect thus far.

[dx4100]

Looks like the PCG are going to push the case for better business tests...

PCG reacts to Chancellor

[malvolio]

Looks like the PCG are going to push the case for better business tests...

PCG reacts to Chancellor

Thing is, would you rather the PCG was closely involved in framing the rules for better and more focused administration or standing over there shouting from the sidelines? I know which I prefer...

[TykeMerc]

That's the best possible outcome. Most of us have learned enough to cope with IR35 perfectly well. I want it left exactly how it is. This is great news, I'm very pleased.

I'm with you on that one, short of abolishing IR35 completely this means that those of us that exist outside IR35 can continue to pay ourselves in a tax efficient manner.

As Simon mentioned until (if) they merge NI and Income Tax it can pretty much be ignored where proper contracting business is going on.
Let's hope they don't change the rules.

I'll wait for my accountants summary to reach a full conclusion, but this Budget doesn't look too awful.

[dx4100]

Thing is, would you rather the PCG was closely involved in framing the rules for better and more focused administration or standing over there shouting from the sidelines? I know which I prefer...

? I didn't criticise them ?

[SorenLorensen]

? I didn't criticise them ?

I think that was meant for me!

Thing is, would you rather the PCG was closely involved in framing the rules for better and more focused administration or standing over there shouting from the sidelines? I know which I prefer...

What really gets me about the current PCG stance is that they are cuddling up to the Tories, rather than being aggressive with them, which is what they absolutely deserve for selling the PCG down the river for votes. They have not made good with their pre-election promises, yet the PCG is playing nice with them, still convinced they're on our side, when it's blatant they are not. Emails from the chairman regaling us with details of cosy phone calls post-budget is really not good enough. Let's face it, if this was Labour, there would be much gnashing of teeth, but it seems the Tories are exempt from criticism. Seems to me that some people just want to play at being politicians.

[dx4100]

I think that was meant for me!



What really gets me about the current PCG stance is that they are cuddling up to the Tories, rather than being aggressive with them, which is what they absolutely deserve for selling the PCG down the river for votes. They have not made good with their pre-election promises, yet the PCG is playing nice with them, still convinced they're on our side, when it's blatant they are not. Emails from the chairman regaling us with details of cosy phone calls post-budget is really not good enough. Let's face it, if this was Labour, there would be much gnashing of teeth, but it seems the Tories are exempt from criticism. Seems to me that some people just want to play at being politicians.

Did they actually say they would scrap IR35 ?

[SorenLorensen]

Did they actually say they would scrap IR35 ?

They did a couple of times before they got in, then it was all "We'll look into it" etc. Now we know they're not going to bother their arses, just like the last lot.

The point is that PCG are not delivering, and are not standing up and fighting like they used to.

[Clippy]

2.203 IR35 – Following the publication of the OTS review of small business tax, the
Government commits to making clear improvements in the way IR35 is administered. These
improvements will include setting up a dedicated offshore helpline staffed by Bob's, publishing Budget
guidance on those types of cases HMRC view as outside the scope of IR35, targeting compliance
activity by restricting reviews to high risk cases and setting up an IR35 Forum which will monitor
HMRC’s new approach. The Government has decided to retain IR35, as abolition would put
substantial revenue at risk.

I fear a lot of that 99% will still be worrying about their status going forward. Its all a bit crap on first reading. Like you said though I suppose we have to wait and see what comes out.

FTFY.

In all seriousness, have you ever dealt with a HMRC helpline? Incompetent jobsworths who haven't a clue what they are talking about.

However, surprisingly, the VAT helpline staff seem to know their arse from their elbow.