The S58 vs IR35 debate

[LisaContractorUmbrella]

I doubt it will be of any consolation but the media are even labelling PSC's as 'tax avoidance vehicles' on a regular basis now NHS 'pay dodge' lets thousands of staff slash their tax bills | Mail Online

[SantaClaus]

I doubt it will be of any consolation but the media are even labelling PSC's as 'tax avoidance vehicles' on a regular basis now NHS 'pay dodge' lets thousands of staff slash their tax bills | Mail Online

Maybe once they start on inheritance tax, Daily Mail readers might start to care.

It's funny though, because the real scandal in the NHS never gets reported... the business consultants who pay themselves six figure salaries or £1000 daily rate.

My wife worked in a NHS admin department where they kitted out the office with brand new plasma TVs, designer chairs and Nespresso machines. She was made redundant whilst the overpaid "business" consultants are still creaming it in.

Oh... and try posting anything in the Daily Mail comments that doesn't fit their agenda. It simply won't appear.

... rant over.

[BrilloPad]

Which is worse these days, tax avoidance or paedophilia?

Or are they about the same?

Tax inspectors who go to jail for lying to parliament will get the same treatment in jail as nonces.

Mr B - best to confess now and get a reduced sentence.

[jbryce]

Oh deary me.....

I doubt it will be of any consolation but the media are even labelling PSC's as 'tax avoidance vehicles' on a regular basis now NHS 'pay dodge' lets thousands of staff slash their tax bills | Mail Online

Gosh. Really? you mean that HMRC may have PSC companies in their sights too? Even though we tout for work, pay our own pension. insurances etc? But PSCs keep the universe moving; without them - business in the UK would lose their flexibility and competitive edge.

Dear oh dear, but that would be madness. Would HMG and HMRC really target us PSCs just as a means of getting more cash into the treasury, even though it's bonkers?

My oh my, but it really looks like Umbrellas and PAYE is the only way to go.

[lucozade]

Gosh. Really? you mean that HMRC may have PSC companies in their sights too? Even though we tout for work, pay our own pension. insurances etc? But PSCs keep the universe moving; without them - business in the UK would lose their flexibility and competitive edge.

Dear oh dear, but that would be madness. Would HMG and HMRC really target us PSCs just as a means of getting more cash into the treasury, even though it's bonkers?

My oh my, but it really looks like Umbrellas and PAYE is the only way to go.

That's what they want us all to be doing so we pay more tax.

However, what does that mean for all the other directors of all the other companies in the UK - do they get a tax advantage whereas I don't. How will people every grow a business?

How do I get work when all the big IT companies only want to employ me as a contractor and via my own limited company?

I believe the problem is much deeper than HMRC understand it to be.

[jamesbrown]

I believe the problem is much deeper than HMRC understand it to be.

It's more complex than a large fraction of the general public understands it to be. The media should do a better job of researching their articles, but contracting is no different than any other technical subject in that respect, and simple, divisive, headlines present and sell better. It's all following a very predictable path, but some of these complexities are readily apparent to the Gov't behind the headlines, which will limit what they propose to change. Ultimately, the Gov't, as well as private companies, rely heavily on highly skilled and internationally mobile contractors.

[PlaneSailing]

I doubt it will be of any consolation but the media are even labelling PSC's as 'tax avoidance vehicles' on a regular basis now NHS 'pay dodge' lets thousands of staff slash their tax bills | Mail Online

Hence the PSC question on the self assessment form. But that would never be used to chase people down would it? Just like the DOTAs number. Oh....

[d000hg]

Gosh. Really? you mean that HMRC may have PSC companies in their sights too? Even though we tout for work, pay our own pension. insurances etc? But PSCs keep the universe moving; without them - business in the UK would lose their flexibility and competitive edge.

Dear oh dear, but that would be madness. Would HMG and HMRC really target us PSCs just as a means of getting more cash into the treasury, even though it's bonkers?

My oh my, but it really looks like Umbrellas and PAYE is the only way to go.

Lots of PSCs ARE tax avoidance vehicles. Not only IT contractors are PSCs - quite legitimately - but also TV presenters and people working high up in companies. They give PSCs a bad name.

[DonkeyRhubarb]

All the contractors I've worked with over the years only operated a Ltd Co to minimise tax.

That's why IR35 caused so much bother.

[eek]

All the contractors I've worked with over the years only operated a Ltd Co to minimise tax.

That's why IR35 caused so much bother.

No they operated through a limited company because the law requires them to. For contractors the tax benefits are merely a side benefit (albeit a financially worthwhile and significant benefit).