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Private sector EDM

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    Private sector EDM

    IR35 OFF-PAYROLL TAX EXTENSION TO PRIVATE SECTOR - Early Day Motions

    Encourage your MP to support the EDM.

    #2
    Why bother?

    NTRT got nowhere. LCAG actually won a HoC vote but its meaningless.

    The issue is that to defeat HMRC you have to defeat the treasury. To defeat the treasury you have to defeat the government.

    The only way to fight HMRC is via the courts. They play very dirty and have endless amounts of money. And they play a very long game. Occasionally people do win against them.

    About the only decent solution I have seen so far is QDOS are offering insurance against the new rules. Apart from that, contracting is dead.

    Comment


      #3
      Originally posted by BrilloPad View Post
      About the only decent solution I have seen so far is QDOS are offering insurance against the new rules. Apart from that, contracting is dead.
      My current solution, pending any worthwhile alternatives such as effective insurance, is to operate within IR35 via a brolly. Then max out pre-tax pension contributions (up to £40k/year currently), and if the annual income after that looks like hitting the higher tax bracket take the rest of the tax year off. Kind of semi-retirement until full retirement is reached, utilising the flexible nature of contracting, I work when I want to.

      Much less stressful than running a Ltd (MTD, divi tax, accountant fees, companies house/HMRC paperwork, VAT, PAYE, ...) and worrying about HMRC and their ineptitude regarding IR35 and the potential for a retrospective knock on the door.

      Bonus being, based on current pension rules, I can take a 25% tax free lump sum on retirement then draw down the rest of the pension pot remaining under higher rate tax threshold, or maybe even basic rate threshold if don't need more than £11k/year pension income or whatever the tax free personal allowance will be by then.

      Sure, I'll be a 'bit' worse off when comparing bottom lines of optimal inside/outside IR35 strategies but it's not all about the money.

      I think it's a sound strategy but if I've overlooked something I'm all ears.
      Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

      Comment


        #4
        Originally posted by Hobosapien View Post
        My current solution, pending any worthwhile alternatives such as effective insurance, is to operate within IR35 via a brolly. Then max out pre-tax pension contributions (up to £40k/year currently), and if the annual income after that looks like hitting the higher tax bracket take the rest of the tax year off. Kind of semi-retirement until full retirement is reached, utilising the flexible nature of contracting, I work when I want to.

        Much less stressful than running a Ltd (MTD, divi tax, accountant fees, companies house/HMRC paperwork, VAT, PAYE, ...) and worrying about HMRC and their ineptitude regarding IR35 and the potential for a retrospective knock on the door.

        Bonus being, based on current pension rules, I can take a 25% tax free lump sum on retirement then draw down the rest of the pension pot remaining under higher rate tax threshold, or maybe even basic rate threshold if don't need more than £11k/year pension income or whatever the tax free personal allowance will be by then.

        Sure, I'll be a 'bit' worse off when comparing bottom lines of optimal inside/outside IR35 strategies but it's not all about the money.

        I think it's a sound strategy but if I've overlooked something I'm all ears.
        Sounds good. But be careful how you choose your brolly.

        Comment


          #5
          Originally posted by BrilloPad View Post
          Why bother?

          NTRT got nowhere. LCAG actually won a HoC vote but its meaningless.

          The issue is that to defeat HMRC you have to defeat the treasury. To defeat the treasury you have to defeat the government.

          The only way to fight HMRC is via the courts. They play very dirty and have endless amounts of money. And they play a very long game. Occasionally people do win against them.

          About the only decent solution I have seen so far is QDOS are offering insurance against the new rules. Apart from that, contracting is dead.
          agreed, and it's about time those that sit and sup tea and eat biscuits with HMRC realise this. HMRC can only be beaten in the courts.

          Comment


            #6
            Originally posted by Hobosapien View Post
            I think it's a sound strategy but if I've overlooked something I'm all ears.
            Dozens of public sector agencies and engagers have used us for IR35 assessments, which can be backed by insurance (Hays, TfL, Home Office among others).

            We are incredibly busy at the moment in assisting (and educating) private sector companies who are trying to prepare for next year. The vast majority of the conversations we are having are positive; it's clearly a concern for engagers but, by and large, they are well aware of the damage that a kneejerk reaction would cause.
            Qdos Contractor - IR35 experts

            Comment


              #7
              Originally posted by Qdos Contractor View Post
              Dozens of public sector agencies and engagers have used us for IR35 assessments, which can be backed by insurance (Hays, TfL, Home Office among others).

              We are incredibly busy at the moment in assisting (and educating) private sector companies who are trying to prepare for next year. The vast majority of the conversations we are having are positive; it's clearly a concern for engagers but, by and large, they are well aware of the damage that a kneejerk reaction would cause.
              I worked at one of these and got marked outside after the QDOS review. Sadly this was about 2 months after I jumped ship, but I hardly blame QDOS for that. I would suspect more of the same.

              Comment


                #8
                Originally posted by Qdos Contractor View Post
                Dozens of public sector agencies and engagers have used us for IR35 assessments, which can be backed by insurance (Hays, TfL, Home Office among others).

                We are incredibly busy at the moment in assisting (and educating) private sector companies who are trying to prepare for next year. The vast majority of the conversations we are having are positive; it's clearly a concern for engagers but, by and large, they are well aware of the damage that a kneejerk reaction would cause.
                this would seem to be encouraging news.

                Comment


                  #9
                  Originally posted by mudskipper View Post
                  this seems to be gathering pace. However, given that EDM's are rarely debated, is this EDM likely to have any effect?

                  Comment


                    #10
                    Originally posted by JohntheBike View Post
                    this seems to be gathering pace. However, given that EDM's are rarely debated, is this EDM likely to have any effect?
                    No

                    Comment

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