IR 35 complete failure

Discussion in 'Jobs (Discussion)' started by Ord_Sgt, May 25, 2009.

Welcome to the Army Rumour Service, ARRSE

The UK's largest and busiest UNofficial military website.

The heart of the site is the forum area, including:

  1. Ord_Sgt

    Ord_Sgt RIP

    Shock horror, this arrse and poorly thought out tax costs more to collect than it actually makes.


    Full story at The Register.

    Great news if you're a contractor and the Tories do bin this. Bloody good PR coups for them if they do, its a no lose situation.

    Edited for clarity
  2. maguire

    maguire LE Book Reviewer

    it's made next to no difference to me and everyone I know who works as a contractor. *shrugs*

    as you say, win win for the tories.
  3. Ord_Sgt

    Ord_Sgt RIP

    For those of us who finance their own training it means we could offset that against tax as we used to before, amongst other things. A good quick win for the Tories and would get thousands of contractors voting for them :D
  4. So for 9 years now they have been operating this. That means that they have known it was a crap idea for eight years. So for about 7 years they have been throwing away money just so as not to admit making a mistake.

    FFS! I want a government that self-corects its mistakes. I have admiration for people who learn from cockups and despise people who wont but just try to hide them. That is incompetent, deceptive and wastefull.

    This lot has got to go. Damned idiots.
  5. Ord_Sgt

    Ord_Sgt RIP

    The thing is with Labour, they won't let the facts get in the way of pursuing their socialist utopia of wealth re-distribution. They thought they would get a bunch of free money by taxing all those overpaid contractors to the hilt - but as with most things Labour, it turned out to be bollox. :x
  6. I am a self employed engineer. this has hung over those who work as I do, but i am fortunate that i generally have several business on my books each year, thus negating the 'disguised employee' justification.

    we need to be encouraging people to become their own business, so they can grow and replace the businesses we lose during the recession, not trying to hammer anyone who shows some independant thought.
  7. As a contractor I have always managed to get outside of the IR35 arrangement, and any other contractor worth his salt will know how to also.

    The alteration of a few choice words in a contract means you are outside of IR35, and can carry on with the company dividend route of legal tax evasion.

    Companies are more than willing to change the phrases/words to get you on board.
  8. maguire

    maguire LE Book Reviewer

    ssshhhhh!!!! :wink:
  9. Ord_Sgt

    Ord_Sgt RIP

    I haven't worked in the UK since they brought it in so didn't investigate ways around it. Binning the whole thing would still be preferable I would have thought.
  10. The only issue I have found with IR35 is when a contract has managed to approach the 2 year mark, and I have had to leave, to avoid IR35.
  11. you don't 'need' to leave at 2 years. If the contract is worded correctly and you are running as a business you would be ok.

    it is the people who get employee benefits, are paid expences as employees, and those who are explicitly contracted (rather than their company) that get cought out.
  12. maguire

    maguire LE Book Reviewer

    'HMRC is spending an extra £1bn in chasing up tax evasion and you can see what a paltry amount it is collecting for its trouble. All the cases being fought in the High Court and at the Special and General Commissioners over IR35 have just been a monumental waste of effort.

    According to the PCG, HMRC has won just a handful of tax investigations out of thousands. Indeed, of the 1,468 IR35 investigations PCG has been involved with, HMRC proved additional tax was owed just six times.'

    they're raising £1.5m a year according to the reg. so for the 1bn they're apparently spending chasing people, the return is less than 0.2%.
    You would have thought with an economic genius like cyclops at the wheel they would have noticed...