Very worrying - the expenses thing

[psychocandy]

Will ANY contractor pass HMRC's proposed Supervision, Direction and Control test? :: Contractor UK

Think this one, if it goes through, is going to be worse than the dividend tax for contracting. Might have a huge impact on the contract market.

Even someone like me who gets the train daily to current client, its £600 or so a month in expenses which then become taxable (probably as dividends so 27.5% at best). So about £2000 a year for me.

Can't see how its going to be feasible for anyone to stay away mon-fri and pay for hotels etc. costing possibly £2000 a month in expenses. £24,000 more to pay tax on probably higher rate - very expensive indeed.

[jmo21]

Will ANY contractor pass HMRC's proposed Supervision, Direction and Control test? :: Contractor UK

Think this one, if it goes through, is going to be worse than the dividend tax for contracting. Might have a huge impact on the contract market.

Even someone like me who gets the train daily to current client, its £600 or so a month in expenses which then become taxable (probably as dividends so 27.5% at best). So about £2000 a year for me.

Can't see how its going to be feasible for anyone to stay away mon-fri and pay for hotels etc. costing possibly £2000 a month in expenses. £24,000 more to pay tax on probably higher rate - very expensive indeed.

I've been very lucky. Never had to travel with contracting in 7 years.

I appreciate plenty of people do it (and for good reasons), and I wouldn't be totally against it for a 6 month contract for example, but SURELY it shouldn't be anyone's long term working situation.

[Pondlife]

“Although only where they are supplying personal services to an engager, and under the right of supervision, direction or control of any person.”

In addition to this issue, the right of Supervision, Direction, and Control (SDC)


You see what they've already done? (HMRC not PC)

[northernladuk]

Will ANY contractor pass HMRC's proposed Supervision, Direction and Control test? :: Contractor UK

Can't see how its going to be feasible for anyone to stay away mon-fri and pay for hotels etc. costing possibly £2000 a month in expenses. £24,000 more to pay tax on probably higher rate - very expensive indeed.

You sure that's right?

[psychocandy]

You sure that's right?

What my figures?

4 nights hotel stay plus 200 mile commute at start and end of the week. Plus food. Easy £500 a week.

[northernladuk]

What my figures?

4 nights hotel stay plus 200 mile commute at start and end of the week. Plus food. Easy £500 a week.

No the fact you pay tax on £24k more bit. I haven't looked in to this to be honest so maybe I'd be better not saying anything until I've understood it. Ignore me.

[b0redom]

So how does it work if I live in Reading, my contract is based at, say Farnborough, and I need to go to Swansea for a meeting/server room build out? Can I claim T+S from Farnborough to Swansea?

Assuming this is the case, what happens if I'm based at home, and need to go to Farnborough some days and Swansea some others? It all just smacks of not being thought out.

The obvious answer would seem to be that all new 'T+S friendly' contracts will be 'Based at the consultant's registered offices, with occasional travel to sites as deemed necessary from time to time.'

[meridian]

“Although only where they are supplying personal services to an engager, and under the right of supervision, direction or control of any person.”

In addition to this issue, the right of Supervision, Direction, and Control (SDC)


You see what they've already done? (HMRC not PC)

No, the HMRC consultation has always said "or", it's the people that write articles and headlines like this that say "and" that are confusing the issue.

We need better accountants and article writers.

[BlasterBates]

If this isn't misinterpretation, the worrying part is that HMRC appears to have learnt how to trap IT contractors. Doesn't bode well for the revised IR35 rule.

[SteelyDan]

Will ANY contractor pass HMRC's proposed Supervision, Direction and Control test? :: Contractor UK

Think this one, if it goes through, is going to be worse than the dividend tax for contracting. Might have a huge impact on the contract market.

Even someone like me who gets the train daily to current client, its £600 or so a month in expenses which then become taxable (probably as dividends so 27.5% at best). So about £2000 a year for me.

Can't see how its going to be feasible for anyone to stay away mon-fri and pay for hotels etc. costing possibly £2000 a month in expenses. £24,000 more to pay tax on probably higher rate - very expensive indeed.

Guess you didn't read to the end: Before we get too carried away, however, it’s important to remember that this is only a consultation document and is therefore not an accurate reflection of what’s actually going to happen