Spring Budget 2023

If I wasn't a risk of losing my job by doing bits on this side, I absolutely would. I contracted for ~8 years I think but all were outside and all were short term contracts where I came in, did what was stated with predefined working regulations, I was offered an extension and went elsewhere. Sometimes I'd go back to the same client for a few months many years later and so called outside contractors were still there, well embedded into the client.
 
jonneymendoza said:
Outside ir 35 you can take more than one contracting.

The thing is, contracting is also a benefit for a company or client.

The client doesn't pay for holidays or sick leave or pension or national insurances on me as a contractor and a lot of projects in its infintry are ideal for contractors to jump on board and get the project going. If the project fails they can get rid of contractors easily but if done by perm staff, it's a bit more hassle.

Tdlr if a client wants to create a risky project, then a contractor is the best way
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Either way, if you’re not ”running a company” that creates jobs you shouldn’t be looking to take advantages of tax breaks designed to create jobs, which of course all of those tax breaks are designed to do.

Anyway, back on topic, IR35 reforms are not worth it for the exchequer, there are other ways to promote an agile workforce.
 
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CapitalOne said:
Either way, if you’re not ”running a company” that creates jobs you shouldn’t be looking to take advantages of tax breaks designed to create jobs, which of course all of those tax breaks are designed to do.

Anyway, back on topic, IR35 reforms are not worth it for the exchequer, there are other ways to promote an agile workforce.
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Is IR35 a tax break?
 
jonneymendoza said:
Is IR35 a tax break?
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If you are an agency worker, not planning to employ people, using the tax system to take advantage of tax breaks designed to encourage companies to employ people, i.e. a contractor outside of IR35 yes. Being inside it is not.

And quite right too.
 
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Ironically most of the Outside IR35 work (certainly in Scotland) is for Govt or Govt linked agencies, most of the big contracting clients (the banks, etc) won't touch outside IR35 with a bargepole anymore, although a lot have increased their day rates to try and partially compensate.
I like contracting as it means I get to move around, work in different companies and industries and frankly I think it gives me a much wider experience that I can use with other clients than having been indoctrinated into one corporate culture.
 
@thenewoc I know we josh eachother about Brexit, bit I’m just watching newsnight and I suggest you watch it. The inference is that those trade deals with asia are going to bring in people who may do your job for less, whilst pre-brexit that freedom of movement would mean much more flexibility for you. I didn’t realise you were an IT contractor previously so I wonder how you feel about that?

On the plus side, we may be able to retire to India much more easily.
 
chrismscotland said:
Ironically most of the Outside IR35 work (certainly in Scotland) is for Govt or Govt linked agencies, most of the big contracting clients (the banks, etc) won't touch outside IR35 with a bargepole anymore, although a lot have increased their day rates to try and partially compensate.
I like contracting as it means I get to move around, work in different companies and industries and frankly I think it gives me a much wider experience that I can use with other clients than having been indoctrinated into one corporate culture.
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I fully support that. What I don’t like is people in that situation taking advantage of tax breaks designed to create jobs to just, well, not create jobs. That part is wrong.
 
Jokester said:
Which tax breaks?
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Running your affairs as a “company” with capex and claiming vat back on cars or whatever rather than just paying tax like everyone else.

Allow me to turn it around. If there are no breaks available why do it? You can move jobs as many times as you like without being a contractor. 10 gigs in 5 years looks dodgy as hell on a CV regardless of the tax arrangements.
 
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CapitalOne said:
Running your affairs as a “company” with capex and claiming vat back on cars or whatever rather than just paying tax like everyone else.

Allow me to turn it around. If there are no breaks available why do it?
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Personally I think for a PSC you should be allowed an allowance so that you can cover expenses, etc from the income made but I do think there are people who take the **** with cars, etc.

I do resent being taxed like a permie now when inside IR35, especially when the rate isn't great and you still get zero benefits/safety nets like a permie does (like Sick Pay)

I've also had multiple clients and side-projects which I've used my Ltd Company for over the years, which makes my life easier as any income is routed via the Company and declared, etc - I know plenty would be pocketing cash or not declaring a few £100 quid for things like helping setup a website or a few hours of Hardware support.
 
CapitalOne said:
The inference is that those trade deals with asia are going to bring in people who may do your job for less
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with todays budget, the chancellor, like Biden, is trying to fund technology/skills growth inside the UK; trade deals with India like Boris was trying to setup,
especially with Indias subsequent alliance with Russia and Modi's human right records are now unpalatable - no ? our friends are the USA & EU.
 
I worked as an inside IR35 contractor for about 9 months, took home more money than I ever did in a full year as a perm, even allowing for Bonus and company pension contribution.
 
CapitalOne said:
Running your affairs as a “company” with capex and claiming vat back on cars or whatever rather than just paying tax like everyone else.
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You haven't been able to claim VAT on cars and stuff for ages. You couldn't do it when I was contracting in the mid-2000s. But contracting often involves bearing costs that being an employee doesn't - it's entirely fair to claim those as business expenses.

IR35 is simply bad law. Tax needs clear and fair rules that let people know where they are, not arbitrary and unclear boundaries that they won't even give you a straight answer on where you lie. If there is a problem with contractors not paying a fair amount of tax then rework the tax rules so they pay more, if you think the system exists to support employing other people (even though that's never been a problem for the thousands of other sole traders) then link tax differences to that, etc.
 
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