What effect will this have on the industry, does this mean after April it will revert back to agencies offering lots work for Ltd drivers again? Also will large companies go back to employing Ltd drivers?
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Blackadda1:
adam277:
Blackadda1:
I can never understand why people get so worked up over IR35 and what other people are doing. There’s a really easy way to make sure HMRC don’t come knocking on your door in years to come. Go onto the HMRC website and use the online employment status checking tool. You answer a few questions from drop down menus and it gives you an instant opinion on your employment status ie employed or self employed. Simply then print it off and keep it. As long as you answer the questions honestly HMRC will honour what opinion it has given. You can even do it without putting your name or address or anything in if your “one of those” that think the government is spying on you and is out to get you. Keep the printout some where safe and crack on. No need to pay for expensive accountants. No need to argue with strangers on forums. No need to worry if that letter is from “the taxman”. No need to worry about backdated tax bills. Easy.Got that it writing that HMRC will honor what the 30 sec employment status tool says? Considering the tax legislation laws in this country amount to like 15,000 pages.
Even if HMRC stand by it I somehow doubt that they will not prosecute you if they consider you broken the law in regards to tax.I mean there are many examples of accountants having to pay large sums of money due to ‘difference of interpretation’
I.e the tax law in this country is purposefully vague.To be clear. I said if you answer the questions honestly HMRC will honour the employment status opinion it’s tool gives you. That has nothing to do with difference of interpretation or if you have purposely broken other laws in regard to tax. The topic is IR35 - ie if someone is employed or self employed. It’s up to the individual to still comply with any other tax laws. And yes it’s in writing that HMRC will honour the opinion given by the tool. A direct quote from the HMRC website: “HMRC will stand by all determinations given by the tool, as long as the information you give remains accurate.”
And the updated CEST still cannot determine approximately one fifth of all enquiries. Over the years it has been widely slated by contractor representatives as being totally unfit for purpose with it’s one size fits all determinations. It is only recently that mention of PSC’s were added to the check employment status for tax questionnaire. Until a test case is brought by HMRC to determine the rules, via a tax tribunal with a Judge, (the Judge is the one who decides whether HMRC have a case) then who is going to rely on CEST?
Oh well. It seems that IR35 is not being scrapped after all.
Santa:
Oh well. It seems that IR35 is not being scrapped after all.
IR35 was never going to be scrapped. All that was happening is that Truss was going to change the rules back to where they used to be before 2021 where the contractor decided if they were in IR35 or not instead of the change that came into force in April 2021 which meant the client did. So it’ll now continue as the client deciding if you’re in or out of IR35 as a contractor and most will choose the arse covering route so you’ll pay the same tax/NI as an employee.