Victory is close on IR35 - happy days

[Old Greg]

Personally, I find that to be a weak argument. Whether a warchest is in a company account or a personal one is largely irrelevant. Obviously, the size of that warchest does depend on cumulative taxation over a period of time, but I think we can separate tax rates from tax structures. I would not advocate high taxation of employees or the self-employed (in the broadest sense of that term). I agree that business expenses are an issue, though, and that needs to be dealt with, not only for travel but capital and human resources for companies that do want to grow.

It is a weak-ish argument but not irrelevant. Where I would agree with Mal, if I understand his intent correctly, is that this isn't about warchests, but people who want (for example) to establish company cash reserves so they can expand, perhaps by taking on an employee who will need paying at the end of every month before the company is paid. In Ireland, this is easy enough to do in year but is a pain if you want to build up cash reserves across tax years.

However, I would say this disadvantage is outweighed by the advantages. And it could work perfectly well with the 25 month rule.

[AtW]

Next budget will have legendary tax increases - most likely it won’t matter how income earned - will be taxed the same

[d000hg]

Next budget will have legendary tax increases - most likely it won’t matter how income earned - will be taxed the same

Maybe the one after that... cranking up tax while everyone is still reeling won't help much. Might get a year to recover first.

[jamesbrown]

It is a weak-ish argument but not irrelevant. Where I would agree with Mal, if I understand his intent correctly, is that this isn't about warchests, but people who want (for example) to establish company cash reserves so they can expand, perhaps by taking on an employee who will need paying at the end of every month before the company is paid. In Ireland, this is easy enough to do in year but is a pain if you want to build up cash reserves across tax years.

However, I would say this disadvantage is outweighed by the advantages. And it could work perfectly well with the 25 month rule.

Right, as I said, the question of legitimate business expenses needs to go beyond travel to capital and human resources and, as a minimum, it should be possible to get relief within year. Sure, across years is trickier, but I think we're talking about a minority of a minority and perhaps that could be mitigated too (if there is no tax advantage of "money boxing" there is probably no reason to prevent it completely).

[Old Greg]

Right, as I said, the question of legitimate business expenses needs to go beyond travel to capital and human resources and, as a minimum, it should be possible to get relief within year. Sure, across years is trickier, but I think we're talking about a minority of a minority and perhaps that could be mitigated too (if there is no tax advantage of "money boxing" there is probably no reason to prevent it completely).

Treatment of other business expenses are very similar in Ireland as with UK. Only real difference in effect is private transport for commute to regular client site.

So if MyCo buys a laptop for €1,000 + VAT, it just reclaims the VAT, and then I deduct 1,000 from my pre-tax salary for the month. Similar enough to UK. Likewise if I employ someone. I do buy another contractor Ltd's services each month and sell them on - all same as UK but we have a friendly agreement to keep things tight around year end.

[Old Greg]

The other difference that the Irish model makes is that you're not always looking over your shoulder at IR35.

7 weeks ago, I was working on a project as a PM. I'm now working as something like a product owner and design lead for a new Covid 19 related project. No worrying about SoW etc. And I don't get pulled into BAU work any more than I would in the UK.

[elsergiovolador]

Next budget will have legendary tax increases - most likely it won’t matter how income earned - will be taxed the same

This is a trap that will cause collapse of the economy in the not so long term. You cannot tax yourself into prosperity.

[SimonMac]

This is a trap that will cause collapse of the economy in the not so long term. You cannot tax yourself into prosperity.

It's nothing to do with prosperity, it's taxing our wayout of the tulip

[MasterBait]

IPSE is a bunch of incompetent liars that try to secure their income by spreading rumours. Boycott them.

[Old Greg]

IPSE is a bunch of incompetent liars that try to secure their income by spreading rumours. Boycott them.

At least they're not a bunch of competent liars that try to secure their income by spreading rumours.