Originally posted by swamp
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
My accountants are suffering due ot the April 2020 reforms
Collapse
X
-
-
Originally posted by ChimpMaster View PostI disagree with this statement.
...
The reforms are already having an impact and they haven't even come into force yet. The entire ecosystem built around I.T. contracting will not survive for long. And the government, in it's dragon-chase for ever increasing tax receipts will ultimately find that they are trying to scrape a barrel that they themselves have punched a hole into.
My view is that the number of outside IR35 contractors will fall dramatically in Q1 2020.
Some of the reasons you mention will be to blame for that (big corporations retreating from the risk) and the small company market will not be big enough to keep the numbers steady.
Mid size firms willing to take a risk (and perhaps litigate that by getting bespoke - and not machine generated - in/out decision) will pick up some talent, but again not enough to absorb the fall out from Big Co.
Ultimately however, those used to taking home 72% or so of a day rate, will want those days to return after a couple of years of permiedom.
Absent a policy U turn I can unfortunately see tax schemes being offered to tempt people back into this world.
A tax scheme is hardly rocket science. Even the present rules permit at least three different schemes that I can think of. We will not and do not offer such to clients, but if I can think of them, others can.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
-
Originally posted by JohntheBike View PostIPSE are only now circulating their position to many interested parties, especially clients, and highlighting the issues, especially warning of the risk of employment benefits claims. They steadfastly refused to do this in the early years and preferred to keep pushing the ideology of IBOYOA, which clearly has failed disastrously.Comment
-
Originally posted by mudskipper View PostWell I think it's fair to say that because of the early cases fought by PCG and others, we've all pretty much known how to operate outside IR35 for the last 20 years. I wouldn't call that disastrous failure.we've all pretty much known how to operate outside IR35 for the last 20 yearsComment
-
Accountants “losing clients” as contractors opt for PAYE to avoid IR35 pitfalls
It's becoming news now.
But will the government listen? Of course not.Comment
-
You might find your winker emoji removed there sir.
A propos your point, the HMRC might hear, possibly listen, but definitely not (re)act.
And, after an undefined period of time after April 2020, there will be bunting and celebration about how they managed to clear the national debt with this action.Comment
-
Originally posted by simes View PostYou might find your winker emoji removed there sir.
A propos your point, the HMRC might hear, possibly listen, but definitely not (re)act.
And, after an undefined period of time after April 2020, there will be bunting and celebration about how they managed to clear the national debt with this action.
One off benefit from contractor world - around £3bn.
Annual effect of IR35 reform (i.e. additional tax) perhaps £1bn on a very good day.
In 1,000 years, all will be good.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
-
My accountant said he's losing about 10-20% of his clients. Luckily for him, they only make up 25% of his total client base.
Things will get much worse, this is just the start.Comment
-
Originally posted by ChimpMaster View PostAccountants “losing clients” as contractors opt for PAYE to avoid IR35 pitfalls
It's becoming news now.
But will the government listen? Of course not.
I have seen a few posts on accountant's websites about why it's still worthwhile to keep your Ltd Co even when working inside IR35. Having read their reasons, personally I can't help but feel it's disingenuous, and more a desperate attempt to avoid the accountancy firm losing clients.
If you take on a 3 month inside IR35 contract, and think there's a good chance contracts after that will be outside, then yes, keep your company ticking over until the future is more clear. Otherwise, if reality is you accept your work will be inside IR35 for the foreseeable future, then I struggle to be convinced it's worth keeping the company. Inside IR35 you basically lose all the tax benefits of running a Ltd Co, whilst simultaneously not getting any of the employment benefits/rights. Ie seems worst of both worlds to me.
So...whilst I wouldn't suggest clients rush to do anything without giving some consideration to a few months down the line, we are saying to most our clients who accept they'll be considered inside IR35 going forwards, that closing is likely the best option.Comment
-
Originally posted by ChimpMaster View PostBut will the government listen? Of course not.
This is nothing to do with the government. It is just contractors and HMRC. And contractors have let HMRC win.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment