Good news for us?
Trucker Jimbob:
Good news for us?
Nope as bang goes any chance of a wage increase and there will be a westward migration again of cheap truck drivers fiddling taxes
Excellent news for agencies and employers wanting to keep wages down.
Good news for private health companies, as less tax collected will push more away from the growing queues of the NHS.
The problem isn’t Tories doing what Tories do.
Its the lack of a real Labour opposition with a credible tax policy of hitting highest earners with a fair share of the tax burden by raising the high rate of income tax to well over 50% more like 75%.While abolishing regressive VAT, Council Tax, and fuel duty.
In real terms IR35 has not been scrapped only the responsibility on the end client to determine contractors employment status has been scrapped thus taking away any financial penalties on the end client. In reality it may as well be scrapped as HMRC in this current climate doesn’t have the time or finances to investigate all contractors and all of the contractors contracts. Always said that IR35 reforms were unworkable and I am just a part time truck driver with a couple of ‘O’ levels, not a high flying rule maker. Seems when its going to cost HMRC a small fortune to catch those terrible tax avoiding truck drivers and the like, then tax avoidance doesn’t seem to be such a dirty phrase after all.
If this reversal of the IR35 issues haven’t benefited us what was the big fuss all about when they were implemented? Shouldn’t a lot of us be reverting back to more tax efficient structures?
Hopefully those of us that want to be a LTD company can go back to how we were personally i much prefered it as i felt more in control but as allways the devil will be in the detail as we all know the powers that be dont like “the little man” getting away with anything and cannot resist making clauses and caviats that create hurdles and hoops to jump through or get ensnared in
IR35 HAS NOT BEEN SCRAPPED.
Lots of misinformation being put out on social media. What is happening is that deciding whether you’re in or out of IR35 is moving back from a decision the client makes to one the contractor makes. Under the existing rules that were changed in 2020 if the client deemed you weren’t subject to IR35 when you were then they’d be the ones who paid the penalties. Under the change that’ll go back to being on the contractor.
Nothing has changed in regards as to whether you can work as a Ltd driver or not. HMRC are still applying the test that unless you’ve a financial interest in the vehicle, so are exposed to losses that vehicle makes, you cannot be classed as self employed.
robbo99.:
Seems when its going to cost HMRC a small fortune to catch those terrible tax avoiding truck drivers and the like, then tax avoidance doesn’t seem to be such a dirty phrase after all.
Tax avoidance is legal. Putting money in your pension is tax avoidance, investing using a stocks and shares ISA is tax avoidance. Tax evasion is not legal and what many “self employed” truck drivers were doing was tax evasion, claiming expenses that weren’t allowed such as travel, classing themselves as self employed when they didn’t meet the tests for being.
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Conor:
robbo99.:
Seems when its going to cost HMRC a small fortune to catch those terrible tax avoiding truck drivers and the like, then tax avoidance doesn’t seem to be such a dirty phrase after all.Tax avoidance is legal. Putting money in your pension is tax avoidance, investing using a stocks and shares ISA is tax avoidance. Tax evasion is not legal and what many “self employed” truck drivers were doing was tax evasion, claiming expenses that weren’t allowed such as travel, classing themselves as self employed when they didn’t meet the tests for being.
No ■■■■ there Sherlock, ive been putting you right for about the past 5 years that tax avoidance is perfectly legal. IR35 comes under tax avoidance and not tax evasion. Have you heard of any contractors going to prison for IR35 breaches? …no neither have I as once again tax avoidance is not illegal and IR35 comes under tax avoidance, Confused? So are the bell ends that make up the tax rules.
Conor:
IR35 HAS NOT BEEN SCRAPPED.Lots of misinformation being put out on social media. What is happening is that deciding whether you’re in or out of IR35 is moving back from a decision the client makes to one the contractor makes. Under the existing rules that were changed in 2020 if the client deemed you weren’t subject to IR35 when you were then they’d be the ones who paid the penalties. Under the change that’ll go back to being on the contractor.
Nothing has changed in regards as to whether you can work as a Ltd driver or not. HMRC are still applying the test that unless you’ve a financial interest in the vehicle, so are exposed to losses that vehicle makes, you cannot be classed as self employed.
You know I could have sworn thats roughly what I posted above.
robbo99.:
Conor:
IR35 HAS NOT BEEN SCRAPPED.Lots of misinformation being put out on social media. What is happening is that deciding whether you’re in or out of IR35 is moving back from a decision the client makes to one the contractor makes. Under the existing rules that were changed in 2020 if the client deemed you weren’t subject to IR35 when you were then they’d be the ones who paid the penalties. Under the change that’ll go back to being on the contractor.
Nothing has changed in regards as to whether you can work as a Ltd driver or not. HMRC are still applying the test that unless you’ve a financial interest in the vehicle, so are exposed to losses that vehicle makes, you cannot be classed as self employed.
You know I could have sworn thats roughly what I posted above.
Think you will find that a Director of a limited company is not self employed. He/she is an employee of the company.
robbo99.:
Have you heard of any contractors going to prison for IR35 breaches? …no neither have I as once again tax avoidance is not illegal and IR35 comes under tax avoidance
I’m sure Conor will be along shortly with his story of how his mate got landed with a £15,000 tax bill. Oddly enough I’ve never heard of anyone else being done for the whole Ltd Co thing or being landed with any retrospective tax bills.
tmcassett:
robbo99.:
Have you heard of any contractors going to prison for IR35 breaches? …no neither have I as once again tax avoidance is not illegal and IR35 comes under tax avoidanceI’m sure Conor will be along shortly with his story of how his mate got landed with a £15,000 tax bill. Oddly enough I’ve never heard of anyone else being done for the whole Ltd Co thing or being landed with any retrospective tax bills.
I think Conor has a lot of imaginary friends, but i’m sure he will be back to tell us all that his “mate” was hit by HMRC for falling foul of the Managed Service Company Legislation, which again falls under tax avoidance, which again is perfectly legal but HMRC justify the tax bills by saying that the contractor didn’t operate within the spirit of the tax rules for which they were designed. So not illegal but still landed with a big tax bill. Tax legislation with many grey areas equals HMRC make up the rules to suit.
robbo99.:
No [zb] there Sherlock, ive been putting you right for about the past 5 years that tax avoidance is perfectly legal.
No you haven’t.
IR35 comes under tax avoidance and not tax evasion.
Indeed it does. However claiming expenses when you’re not entitled to is evasion.
tmcassett:
I’m sure Conor will be along shortly with his story of how his mate got landed with a £15,000 tax bill. Oddly enough I’ve never heard of anyone else being done for the whole Ltd Co thing or being landed with any retrospective tax bills.
Actually it was a member of this forum who got it. Harry7 posted he’d got a £6500 bill. There were several threads about it over 2015-2017.
the maoster:
peirre:
Does your tax bill exceed the current forum record bill of £15K-£16K?£15650 actually peirre
. It may be a forum record, but it’s nowhere near a record where I work! Anyhoo after much tooing and froing it has gone away after I proved that my Ltd Co was folded for legitimate reasons (I went PAYE) two weeks BEFORE the demand was sent. Ltd Co = limited liability.
trucknetuk.com/phpBB/viewto … &p=2063346
the maoster:
Two of my colleagues have received unwelcome Christmas pressies from HMRC with regards to their time with Think. One got a bill for over 9 grand, the other had a bill for £19500 land on his doorstep last Monday! The clock is ticking.
trucknetuk.com/phpBB/viewto … &p=2063355
morphie:
bah ive had the dreaded letter and quite a few of my ex collegues have too luckily for me if you can call it that my bill is in the hundreds…most of my collegues are 12,13,14 thousand plus… cracking xmas pressie
malgarner:
I have had a bill for £4000 + and not very happy I am in contact with hmrc as I got the bill I believe we need to stick together and get the agencies done for forcing drivers to go self employed so they don’t have to pay employers ni and holiday pay + the wtd ids Immingham adr network all use similar routes lets get them done I was paying £30.00 per week to get paid by esentual part of adr network and I want my money back they are all taking the p*** time to react
mal garner
…could go on and on. But it’s all something I made up apparently you swivel eyed smoothbrained loon? What a prick.
Carryfast:
The problem isn’t Tories doing what Tories do.
Its the lack of a real Labour opposition with a credible tax policy of hitting highest earners with a fair share of the tax burden by raising the high rate of income tax to well over 50% more like 75%.While abolishing regressive VAT, Council Tax, and fuel duty.
Carryfast speaking sense.
I remember Labour criticizing very recently the national insurance increase hike. Them saying that “This is a tax on everyone that people can not afford.”
Now, the Tory government has scrapped that along with freezing energy bills along with a load of tax cuts and the Labour party are criticizing the government for increasing borrowing while cutting taxes.
They are just being opposition for the sake of it with no real credible plan of their own. It is also quite funny that Labour are now the ones chastising the Tories for borrowing too much xD wtf is going on with UK politics lol.
Tbf the idea of a windfall tax on energy profits was Labour idea which eventually the Tories followed.
As was the idea of a freeze on bills, albeit labour wanted the cap at a lower level and wanted to tax some of the £170bn estimated extra profit the energy producers will make to subsidise the cost while the Tories will just let thise profits sit while Joe public pays it back over years.
You can see a pattern here no?
The problem with unleashing a detailed policy miles out from an election is that parts of that policy can be pinched, as seen above. Plus the other side of it really they don’t need to unveil any detail as the Tories are doing a fairly good job of hanging themselves.
They missed a trick here by keeping the freeze on personal tax allowances basic and higher rate while simultaneously scoring a huge own goal by abolishing the additional rate for super high earners.
So your company director will pay no more tax than he does normally, while we pay hundreds possibly thousands more over the period of the freeze as those who sit just below each threshold get dragged into the tax/higher tax system.
I’m actually actively avoiding working any extra because I lose too much for me to justify it to myself. Same with some others I know. How does that square with the increased productivity this government allegedly seek. Remember this is a cabinet who called us (ie, the worker types) the “worst idlers in the world”.
Trickle down economics works in theory. But that theory gets derailed when greed enters the fray. If it worked then the workers of companies with huge profits, supermarkets say, would be on a banger of an hourly wage instead if having to have it dragged up by raises in minimum wage or living wage…
Whichever way you look at it the optics of it don’t look good at all, and essentially they’ve shoved two fingers up at the numbers of voters they need to stand a chance in the next election. And I honestly cannot believe that after 12 years if failure whilst in power people still have the balls to lay any blame at anyone else other than the Conservatives.
Conor:
robbo99.:
No [zb] there Sherlock, ive been putting you right for about the past 5 years that tax avoidance is perfectly legal.No you haven’t.
IR35 comes under tax avoidance and not tax evasion.
Indeed it does. However claiming expenses when you’re not entitled to is evasion.
But you have constantly slated Ltd Co drivers for being tax avoiders as if they are the lowest form of existence, when as I have told you on a regular basis over approximately the last 5 years that tax avoidance is perfectly legal…the penny seems to now have finally dropped. Even putting money into premium bonds is a way to avoid paying tax on any winnings, but as ever i’m sure you already know that!
As this topic is about IR35 which once again just incase the penny hasn’t finally dropped, comes under tax avoidance, (the legal way to reduce one’s tax liability), I fail to see why you continue to bang on about tax evasion with dodgy receipts, tax evasion is punishable by the law as it is illegal. Out of all of your “mates” how many have been PROSECUTED for tax evasion for submitting so called questionable expenses/receipts, I can tell you exactly, a big fat zero. And meanwhile the big corporations use accountants using sharp practices to avoid paying millions if not ■■■■■■■■■■ billions in tax, this very rarely falls under tax evasion.
As I posted in my first post, which you so kindly repeated, IR35 is unworkable, HMRC are in the BUSINESS of collecting money for the government. Do you really think that they are going to spend thousands of pounds per contractor to investigate their contracts for IR35 to recoup any questionable expense claims and punish the said contractor with the firing squad? The government wanted to put the responsibility on the end client which made it easy for HMRC as it clumped contractors together and the end client paid the penalties, a win win for HMRC, that as we know has now been scrapped.
Get real Conor, think outside of the box a little bit.