This is the end of contracting...

This is the end of contracting...

Author
Discussion

jammy_basturd

29,778 posts

213 months

Wednesday 25th November 2015
quotequote all
hornetrider said:
Is the current status quo about to fly out the window?
I feel like we're losing sight of what HR's original question was! hehe

Eric Mc

122,053 posts

266 months

Wednesday 25th November 2015
quotequote all
The simple answer is we don't really know yet. We MIGHT be in a better position to comment in a few hours time.

However, as I keep saying, I do not think that they can actually change much at all. IR35 is all about INTERPRETATION rather than a strict list of things you MUST comply with.

It is about developing a FEEL for the relationship that exists between the worker and for whom he is working.

Also, IR35 should never be looked at in isolation from the overall approach to assessing an individual's status. It is part of an overarching set of principles regarding employers/employee/businesses etc that have been in place for over 100 years.

If special and unique rules were devised purely for IR35 purposes, it would create a disaatrous chain reaction affecting the whole legal basis of how you work out whether a person is "in business on their own account" or merely an "employee".

CaptainSlow

13,179 posts

213 months

Wednesday 25th November 2015
quotequote all
hornetrider said:
Not really, I've already stated that in the curent rules I'm outside IR35. Apologies if I'm repeating the obvious.

This thread is about potential changes to how the govt will be treating PSC's. My question was related to how those mooted changes will impact your typical IT contractor who falls outside of current IR35 legislation. Apologies if that wasn't clear.
What is a typical IT contractor? The reasons for falling in or out of IR35 can differ, they may also be inconsistent.

hornetrider

63,161 posts

206 months

Wednesday 25th November 2015
quotequote all
jammy_basturd said:
hornetrider said:
Is the current status quo about to fly out the window?
I feel like we're losing sight of what HR's original question was! hehe
wobble

I'll tune back in 'in a few hours time'.

Eric Mc

122,053 posts

266 months

Wednesday 25th November 2015
quotequote all
Best bet.

Prepare to be none the wiser though.

Guvernator

13,163 posts

166 months

Wednesday 25th November 2015
quotequote all
Eric Mc said:
Best bet.

Prepare to be none the wiser though.
Yep this ^^^

I very much doubt the Autumn Statement will be clear cut and concise on exactly what is going to happen. It will be deliberately vague and still under "consultation" while they try to work what they can get away with, without rocking the boat too much.

hornetrider

63,161 posts

206 months

Wednesday 25th November 2015
quotequote all
Guvernator said:
without rocking the boat too much.
cloud9

wink

theboss

6,919 posts

220 months

Wednesday 25th November 2015
quotequote all
hornetrider said:
Guvernator said:
without rocking the boat too much.
cloud9

wink
I'm not concerned about it rocking but rather being blown out of the water!

jammy_basturd

29,778 posts

213 months

Wednesday 25th November 2015
quotequote all
Knowing HMRC, they'll try and remove the water, rather than the boat.

Eric Mc

122,053 posts

266 months

Wednesday 25th November 2015
quotequote all
Somebody has to pay for Trident smile

Guvernator

13,163 posts

166 months

Wednesday 25th November 2015
quotequote all
When I said rocking the boat, I didn't mean for contractors, I meant not upsetting the big businesses. If they can get away with shafting contractors without it impacting too much on their lodge mates\future employers, they'll do it.

Eric Mc

122,053 posts

266 months

Wednesday 25th November 2015
quotequote all
Apparently, HMRC has set up a limited company so it can shunt some of its staff sideways in order to meet reduced staff targets.

Guvernator

13,163 posts

166 months

Wednesday 25th November 2015
quotequote all
Eric Mc said:
Apparently, HMRC has set up a limited company so it can shunt some of its staff sideways in order to meet reduced staff targets.
I assume they'll all be taking the new IR35 tests too then? wink

Let's face it, contractors are a legitimate way for big companies to cook the books in terms of both headcount and shunting around staffing overheads\costs to a more favourable column in the bookkeeping ledgers. Any impact on that is likely to ps off those businesses, surely trying to get an extra few hundred million in tax (a drop in the ocean) isn't worth that pain so I'm still trying to work out what Osborne's end goal is here?

The only thing I can think of is that he wants to make it easier for large consultancy and\or offshore firms to fill the void that a large contractor exodus would bring.

dom9

8,087 posts

210 months

Wednesday 25th November 2015
quotequote all
Checking in for updates... Another O&G Contractor here!

I do feel like 'the game is up' and I am currently forming a plan to escape come April 2016.

Edited by dom9 on Wednesday 25th November 13:41

0000

13,812 posts

192 months

Wednesday 25th November 2015
quotequote all
Did I miss it?

Eric Mc

122,053 posts

266 months

Wednesday 25th November 2015
quotequote all
Absolutely no detail in the actual speech except for a one liner where he said that he would be tackling "disguised income" - which covers a lot more than just IR35.

We wil now have to wait for the Briefing Document.

blindswelledrat

25,257 posts

233 months

Wednesday 25th November 2015
quotequote all
Eric Mc said:
The simple answer is we don't really know yet. We MIGHT be in a better position to comment in a few hours time.

However, as I keep saying, I do not think that they can actually change much at all. IR35 is all about INTERPRETATION rather than a strict list of things you MUST comply with.

It is about developing a FEEL for the relationship that exists between the worker and for whom he is working.

Also, IR35 should never be looked at in isolation from the overall approach to assessing an individual's status. It is part of an overarching set of principles regarding employers/employee/businesses etc that have been in place for over 100 years.

If special and unique rules were devised purely for IR35 purposes, it would create a disaatrous chain reaction affecting the whole legal basis of how you work out whether a person is "in business on their own account" or merely an "employee".
Eric, although you are probably right and I don't know much about IR35, they got round what you were saying in a construction related similar issue last year by simply making a new criteria and saying it was purely tax law and did not apply to employment law.
THe law was so black and white that it also encompassed many people it did not intend to. They went at it like a bull in a china shop and didn't give a st about the fallout
George Osborne is the most left wing chancellor we have had in my lifetime

Eric Mc

122,053 posts

266 months

Wednesday 25th November 2015
quotequote all
The Construction Industry has had special rules regarding the use of "self employed" contractors for decades.

willisit

2,142 posts

232 months

Wednesday 25th November 2015
quotequote all
It's online: https://www.gov.uk/government/publications/spendin...

Not read it yet.. obviously!

Edit: Helpfully not up to date yet... why tweet it then Gov?! :P

Guvernator

13,163 posts

166 months

Wednesday 25th November 2015
quotequote all
Eric Mc said:
Absolutely no detail in the actual speech except for a one liner where he said that he would be tackling "disguised income" - which covers a lot more than just IR35.

We wil now have to wait for the Briefing Document.
Any ideas when this will be forthcoming?