This is the end of contracting...

[Eric Mc]

Could be out within an hour or so. There might even have been printed copies being handed to correspondents and reporters as they left the chamber a few minutes ago.

Google under "2015 Spending Review Briefing Document" - or words of that nature.

Edit - Already out - see the link posted above. It's usually available as soon as the Chancellor's bottom hits the bench.

[jammy_basturd]

blindswelledrat said:

George Osborne is the most left wing chancellor we have had in my lifetime

You're not wrong! The bullet points on the BBC article state that he's scrapped £4.4b of tax credit cuts and that they will look to raise £5b from a "fresh crackdown on tax avoidance".

So basically taking from businesses to give out in social welfare.

[pbg2770]

https://www.gov.uk/government/uploads/system/uploa...

"3.20 Employment intermediaries and tax relief for travel and subsistence – As confirmed at Summer Budget 2015, the government will legislate to restrict tax relief for travel and subsistence expenses for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. Following consultation, relief will be restricted for individuals working through personal service companies where the intermediaries legislation applies. This change will take effect from 6 April 2016."

Where it applies? Is this a change? Brings in the obvious question around how it is assessed / enforced.

[willisit]

Looks like we still have some waiting to do - there is little information there (the contracting web sites seem to agree).

[pbg2770]

Here's the disguised income bit:

3.87 Disguised remuneration – The government intends to take action against those who have used or continue to use disguised remuneration schemes and who have not yet paid their fair share of tax. The government will also consider legislating in a future Finance Bill to close down any further new schemes intended to avoid tax on earned income, where necessary, with effect from 25 November 2015.

However, a Ltd. Co. isn't a scheme. Unless you're a socialist.

[blindswelledrat]

Eric Mc said:

The Construction Industry has had special rules regarding the use of "self employed" contractors for decades.

I know, but I am referring to the changes bought in last year entitled "false self-employment" which seem to mirror the IR35 goings on.
Almost like they were testing the water with the construction industry to apply it to the wider market.

[hornetrider]

pbg2770 said:

Here's the disguised income bit:

3.87 Disguised remuneration – The government intends to take action against those who have used or continue to use disguised remuneration schemes and who have not yet paid their fair share of tax. The government will also consider legislating in a future Finance Bill to close down any further new schemes intended to avoid tax on earned income, where necessary, with effect from 25 November 2015.

However, a Ltd. Co. isn't a scheme. Unless you're a socialist.

Would this be referring to the Gary Barlow/Jimmy Carr school of investing in film 'schemes' and the like?

[AndStilliRise]

So is the end of the off-shore loan schemes then? Not that i am part of any.

[pbg2770]

hornetrider said:

pbg2770 said:

Here's the disguised income bit:

3.87 Disguised remuneration – The government intends to take action against those who have used or continue to use disguised remuneration schemes and who have not yet paid their fair share of tax. The government will also consider legislating in a future Finance Bill to close down any further new schemes intended to avoid tax on earned income, where necessary, with effect from 25 November 2015.

However, a Ltd. Co. isn't a scheme. Unless you're a socialist.

Would this be referring to the Gary Barlow/Jimmy Carr school of investing in film 'schemes' and the like?

That's what I suspect.

[Olivera]

No punitive news in the budget from what I can see. The new year's Porsche 911 or Maserati is still on

[Guvernator]

So looks like the crackdown on expenses is going ahead. Not that big a deal for me as I tend to work locally or from home but I know some people who will loose out.

Nothing firm on IR35 except the paragraph about cracking down on tax avoidance schemes. Whether running a Ltd company is seen as a "scheme" is unclear at this point.

[worsy]

Guvernator said:

So looks like the crackdown on expenses is going ahead. Not that big a deal for me as I tend to work locally or from home but I know some people who will loose out.

Nothing firm on IR35 except the paragraph about cracking down on tax avoidance schemes. Whether running a Ltd company is seen as a "scheme" is unclear at this point.

T&S crackdown applies to those within IR35 only.

[Eric Mc]

blindswelledrat said:

Eric Mc said:

The Construction Industry has had special rules regarding the use of "self employed" contractors for decades.

I know, but I am referring to the changes bought in last year entitled "false self-employment" which seem to mirror the IR35 goings on.
Almost like they were testing the water with the construction industry to apply it to the wider market.

The underlying principles are the same. A person is either running a business or they are not.

[Eric Mc]

hornetrider said:

pbg2770 said:

Here's the disguised income bit:

3.87 Disguised remuneration – The government intends to take action against those who have used or continue to use disguised remuneration schemes and who have not yet paid their fair share of tax. The government will also consider legislating in a future Finance Bill to close down any further new schemes intended to avoid tax on earned income, where necessary, with effect from 25 November 2015.

However, a Ltd. Co. isn't a scheme. Unless you're a socialist.

Would this be referring to the Gary Barlow/Jimmy Carr school of investing in film 'schemes' and the like?

Yes - and the Rangers FC EBT etc.

[hornetrider]

Eric Mc said:

hornetrider said:

pbg2770 said:

Here's the disguised income bit:

3.87 Disguised remuneration – The government intends to take action against those who have used or continue to use disguised remuneration schemes and who have not yet paid their fair share of tax. The government will also consider legislating in a future Finance Bill to close down any further new schemes intended to avoid tax on earned income, where necessary, with effect from 25 November 2015.

However, a Ltd. Co. isn't a scheme. Unless you're a socialist.

Would this be referring to the Gary Barlow/Jimmy Carr school of investing in film 'schemes' and the like?

Yes - and the Rangers FC EBT etc.

Jolly good

[CRB14]

Eric Mc said:

The Construction Industry has had special rules regarding the use of "self employed" contractors for decades.

Are you referring to CIS schemes? The only difference I see there is that you're taxed 20% at source then obtain a refund for the tax-deductibles (but obviously then have to pay additional NI contributions).

This also only covers certain folk within construction and doesn't affect ltd cos.

[northernmedia]

Contractor of 10 plus years, reading this with interest!

[Eric Mc]

CRB14 said:

Eric Mc said:

The Construction Industry has had special rules regarding the use of "self employed" contractors for decades.

Are you referring to CIS schemes? The only difference I see there is that you're taxed 20% at source then obtain a refund for the tax-deductibles (but obviously then have to pay additional NI contributions).

This also only covers certain folk within construction and doesn't affect ltd cos.

Yes - I know all that. 40 plus years ago the construction industry had a specific problem with individuals being paid cash and not paying any tax at all. The original "deduction at source " scheme was introduced back then and it has been modified a number of times since.

In the IT industry, "employers" were and are reluctant to take on individuals on a "self employed" basis because it exposes them to possible large back payments of underpaid PAYE and Class 1 NI. Therefore, they encourage "self employeds" to operate through their own limited companies or an "umbrella agency" of some sort. This transfers the risk from the "employer" to the "employee" or the "umbrella agency".

[Guvernator]

Oops devil is in the detail, looks like this was slipped in too

"3.97 Office of Tax Simplification (OTS) review of employment status – The government
has responded to the final report of the OTS review of employment status and is taking forward
the majority of recommendations."

For a link to what the OTS recommended look here.

https://www.gov.uk/government/uploads/system/uploa...

Looks like some form of reform of IR35 and Employment status is still on the cards but still not sure what form that will take.

They've also axed the £4.4bn of planned cuts but hope to reclaim £5bn by clamping down on tax avoidance and imbalances, make of that what you will.

Tbh I wish they would just grow a pair and jump one way or the other. I hate all this waiting around.

[ewenm]

Guvernator said:

Tbh I wish they would just grow a pair and jump one way or the other. I hate all this waiting around.

Well exactly. Make a decision, set the rules rather than relying on interpretation of the legislation, and allow people to decide their best route forward.