Peeved off

[Mr Blek]

So here I am, a contractor on and off since 1999. As much as I'd like to think myself as what is known in the permie world as a 'money grabbing contractor', the reality is quite different.

I've had a stab 3 other ventures (as well as contracting), and one seems to be kicking off. However, financial concerns have meant I've gone back to contracting as well as operating my other venture. I went with Giant as all this IR35 legislation has scared the **** out of me (who wants the taxman shafting them after all).

But now I'm paying tax almost like a permie without the benefits and I'm getting peeved off. My badge etc says Contractor, I'm not allowed to use staff facilities (inc car park), and when my kid is born in a couple of months I don't get the benefits of time off.

And as this contract is outside IR35, I'm thinking wtf did I go with Giant in the first place. Surely it would have made more sense to register with the PCG, get professional indemnity insurance, and then go with my exisiting LTD company.

I can see what the Govt wanted to do with the IR35 legislation - stop permies going contracting in the same role for the same company and enjoy the benefits of a LTD company. Fair enough. But what about your contractor that is offering a specialist service, continiously looking for other opportunitues, spending money on self investment - conveniently forgotten by the Govt and tarnished with the same brush.

Surely there's some European employment law that is being broken - considered a permanenet employee but without the benefits? I bet Kinnock, Madelson et all don't give a **** cause they too busy frauding the EU anyhow.

Anyway, rant over. What's the best way to prepare yourself to be totally outside IR35 so if/when they do come knocking you have everything in place.

Cheers

MB

[Rebecca Loos]

just go for an offshore scheme and stop worrying about IR35 and whether you're in or out....

Alternatively, if your contract is outside IR35, surely you are using Giant Powerhouse and so they pay you dividends mainly and so you are paying much less tax than a permie?

I would guess that for the govt to treat you as a contractor (no employee rights) but the HMRC to treat you as an employee (if you're inside IR35) probably breaks some sort of rules, but unless you have a pretty good lawyer and are ready to argue your case up to a few appeal courts, you won't be able to challenge this "unfairness"

Anyway, listen: the whole thing is unfair. No question. Now do you do anything about it, or have a rant every so often. Your choice.

[Mr Blek]

Offshore scheme? First I've heard of that - care to elaborate on the legality?

Using Giant I'm paying 32% of my income as tax apparently - but I'm not sure if that includes the % I will have to pay on the dividends.

[malvolio]

You seem to have a handle on the contractual and working arrangements, so all you really need is the investigation insurance, which is bundled in the PCGPlus package, just in case Hector takes a punt. Then you can take comfort in the 1200-to-3 win/loss ration the PCG is boasting about. So stop faffing around, join the PCG, get your own LtdCo (which can do more than one thing, remember, should you wish to branch out), stop ticking the box on the P35 and stop pretending an umbrella saves you money. New year, new beginnings.

BTW the "employee but no rights" idea has already been raised (modesty forbids I say who started it off... ) and is being chased up already, but it will take time.