HMRC IR35 complaints ignored for 7 months and counting

[DeludedKitten]

My umbrella, according to Companies House made a profit of £1.58m last year and their turnover was £1.7m. They paid no tax on profits in 2017 as their reconciliation tax of expense in 2016 (@ £6,472) was higher than the standard the rate of corporation tax. If the HRMC had devised a way for us to pay tax normally without umbrella companies they’ll collect way more than they do now. Umbrella companies are just Ltd. companies on steroids, it’s so obvious!

Who is the umbrella company? Making that percentage profit isn't something that umbrella companies can do.

For example, Contractor Umbrella had turnover of £33.9 million last year, cost of sales of £33.2 million, leaving a gross profit of £750k. Then paid wages of £450k leaving a profit after tax of £77k on a turnover of nearly £34million.

Your figures don't stack up.

[plannercontractor]

Sorry, it was indeed a mistake. My umbrella operates under several company names. They're called orange genie but companies house lists about 10 different registered companies/subsidiaries with the same address for them. My figures were for one of those listed but not the one that pays me which is listed as orange genie cover ltd. They had a turnover of £97.7m and a cost sales of £94.8m last year, their filing can be found here https://beta.companieshouse.gov.uk/c...filing-history

[plannercontractor]

Not sure what else you want us to say now.

Not much but thanks for the input, it seems that there's been some heart softening for contractors who are not in the same position as most of you are, this is appreciated. I am very soon about to start my permanent contract, my income would be more than I am getting with the umbrella plus with a possible 52 days paid holiday a year, if you account for annual entitlement, bank holidays and flexi leave allowed, a very good pension scheme, funding for additional training and short courses, payment for professional membership fees, and sick leave and other benefits. Things I couldn't enjoy as a contractor.

Councils are not so bad as employers after all but the HMRC needs to address the issues of who is responsible to pay certain tax when someone is working as a contractor, who is the employer for those caught by IR35 (i.e. agency or umbrella? or are we classed as self-employed?), if we are not self-employed then why are we paying employers contribution from our agreed rate prior to IR35? I made some sacrifices after April 2017 and I hope others don't have to do the same through no fault of their own.

[northernladuk]

Councils are not so bad as employers after all

I'd beg to differ but that's for another thread.

Guess we are done now?

[plannercontractor]

Well if you think that, then just wait till IR35 hits the private sector, then you’ll hear about respect for workers etc. They already work an average of 6 hours a week more than public sector workers for similar pay. Councils are run by people and people will always look for the easiest option available to them. If you think for a minute that a private sector employer in the same situation would have done it differently then good.

Yes we’re done, thanks for everything. If you look down on council workers then it’s no different to the way southerners look down on northerners. But born & bred in London, I was brave enough to go to a northern uni (to the dismay of my friends) but although I wouldn’t chose to live up north again, it was 4 years well spent. It’s not that grim up north or at councils.

[northernladuk]

I never said I look down on council workers. I said I beg to differ about councils being good employers. I can't think of many places that would have treated more shabbily than you have been here for starters, but as I said, that's for another thread.

[plannercontractor]

Apologies, I must have misinterpreted it. I don’t hold a grudge with the council. If I was in their place or yet better running business and needed staff I couldn’t afford on permanent contracts, I would have done exactly the same if there was nothing stopping or no repercussion on me.

Anyway, thanks for all the advice again.