Hi all – my first post on here and my first contribution is non other than my 10 Point Plan to legally avoid paying IR35 related taxes when contracting via my own Ltd Co.
1. Join the PCG. Use the PCGPlus membership which includes Professional Expenses Insurance and PAYE audit cover (Jury Service insurance included to boot). A total of £220+vat per year.
2. Knock yourself out, contracting away, paying yourself something like the National Minimum Wage and the rest in Dividends.
3. Forget about IR35.
4. If, in the unlikely event HMRC should select you for an enquiry at any point in the future (normally via a PAYE audit), start the ball rolling with your PCG insurance. Forget IR35, carry on contracting and let your insurers, legal professionals and the PCG deal with the HMRC.
5. Your insurers and legal professionals will fight HMRC on your behalf while you sit back, carry on contracting and think of the odds that the HMRC will lose. This is currently running at 1462-6 against them (PCG cases).
6. The investigation and subsequent fight between the HMRC and the PCG is likely to take several years if the HMRC don’t back down first.
7. In the unlikely event the HMRC push for an expensive win against your legal professionals, it will most certainly be taking them longer than two years from now. In that time (even before then), there will have been a General Election and Gordon Brown and his cronies who introduced IR35 will have gone. The new Tory government will discover what everyone already knows now, that the cost of enforcing IR35 is far higher than the amounts they get back from it (the government refuse to reveal the costs which tells you everything you need to know). It will therefore be recognised for the government waste that it is. Besides that, the Tories have already been considering scrapping IR35 to support Small Enterprises. There is no doubt in my mind that for various reasons it will be repealed by the Tories quite soon after they come to power.
8. Any IR35 cases currently under investigation will collapse as the law is changed.
9. Sit back, carry on paying yourself dividends and forget all about IR35.
10. Don’t forget to vote Conservative. Even if you hate them it’s an essential part of the plan. And no – I’m not a Conservative party activist before you ask. I just want rid of the current government so that my plan works.
There you have it. Fire at will – I will be disappointed if you don’t!
1. Join the PCG. Use the PCGPlus membership which includes Professional Expenses Insurance and PAYE audit cover (Jury Service insurance included to boot). A total of £220+vat per year.
2. Knock yourself out, contracting away, paying yourself something like the National Minimum Wage and the rest in Dividends.
3. Forget about IR35.
4. If, in the unlikely event HMRC should select you for an enquiry at any point in the future (normally via a PAYE audit), start the ball rolling with your PCG insurance. Forget IR35, carry on contracting and let your insurers, legal professionals and the PCG deal with the HMRC.
5. Your insurers and legal professionals will fight HMRC on your behalf while you sit back, carry on contracting and think of the odds that the HMRC will lose. This is currently running at 1462-6 against them (PCG cases).
6. The investigation and subsequent fight between the HMRC and the PCG is likely to take several years if the HMRC don’t back down first.
7. In the unlikely event the HMRC push for an expensive win against your legal professionals, it will most certainly be taking them longer than two years from now. In that time (even before then), there will have been a General Election and Gordon Brown and his cronies who introduced IR35 will have gone. The new Tory government will discover what everyone already knows now, that the cost of enforcing IR35 is far higher than the amounts they get back from it (the government refuse to reveal the costs which tells you everything you need to know). It will therefore be recognised for the government waste that it is. Besides that, the Tories have already been considering scrapping IR35 to support Small Enterprises. There is no doubt in my mind that for various reasons it will be repealed by the Tories quite soon after they come to power.
8. Any IR35 cases currently under investigation will collapse as the law is changed.
9. Sit back, carry on paying yourself dividends and forget all about IR35.
10. Don’t forget to vote Conservative. Even if you hate them it’s an essential part of the plan. And no – I’m not a Conservative party activist before you ask. I just want rid of the current government so that my plan works.
There you have it. Fire at will – I will be disappointed if you don’t!
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