IR35 legislation is supposed to level the playing field so that let’s say a driver working via an agency through their own Ltd company shouldn’t have a tax/ni liability less than an employed driver doing the same job at the same place of work. The Ltd co driver pays far less ni and a lesser rate of tax on the dividends that he/she draws, compared to the tax the employed driver pays.Isn’t a Ltd co driver under the supervision, direction and control of the company he/she is driving for? This is itself supposed to be a criteria to point that the said driver should be an employee of the company he/she is driving for, ie the end client. Then there are the expenses that the Ltd co driver can claim thus reducing their tax liability further, the full time employed driver doing exactly the same job as the Ltd co driver at the same premises can’t claim all of the expenses that the Ltd co driver can.
Disclosure of HM Revenue and Customs’ compliance data relating to the legislation would result in a risk of non-compliance with the legislation. Accordingly I am not able to provide the data requested.
Effectiveness
It is hard to judge the effectiveness of the legislation, since as of 2010 the UK Inland Revenue have not published any figures. On 6 January 2004 Dawn Primarolo was asked in Parliament how many investigations under the IR35 regulation have (a) been initiated, (b) resulted in additional revenue and (c) been concluded without securing additional revenue. In a written answer she replied that it was not possible with any accuracy to isolate data relating solely to this legislation.[11]
On 15 June 2009 in the House of Commons Labour MP Terry Rooney (Bradford North) asked the Chancellor of the Exchequer “how many investigations concerning IR35 were launched in each of the last five years; and how many of them resulted in (a) prosecution, (b) an increase in tax due and (c) no further action”. Kitty Ussher speaking for the Chancellor replied, “The intermediaries legislation, commonly known as ‘IR35’, was introduced with effect from 6 April 2000 to counter the avoidance of employed levels of tax and national insurance by individuals providing their services through intermediaries. Disclosure of HM Revenue and Customs’ compliance data relating to the legislation would result in a risk of non-compliance with the legislation. Accordingly I am not able to provide the data requested.”[12] The July 2009 issue of IT Now, the British Computer Society magazine, reported that between April 2002 and March 2008 the Government had raised £9.2 million under IR35 legislation compared to the £220 million that it was initially expected.[13]
carlston49:
Disclosure of HM Revenue and Customs’ compliance data relating to the legislation would result in a risk of non-compliance with the legislation. Accordingly I am not able to provide the data requested.Effectiveness
It is hard to judge the effectiveness of the legislation, since as of 2010 the UK Inland Revenue have not published any figures. On 6 January 2004 Dawn Primarolo was asked in Parliament how many investigations under the IR35 regulation have (a) been initiated, (b) resulted in additional revenue and (c) been concluded without securing additional revenue. In a written answer she replied that it was not possible with any accuracy to isolate data relating solely to this legislation.[11]On 15 June 2009 in the House of Commons Labour MP Terry Rooney (Bradford North) asked the Chancellor of the Exchequer “how many investigations concerning IR35 were launched in each of the last five years; and how many of them resulted in (a) prosecution, (b) an increase in tax due and (c) no further action”. Kitty Ussher speaking for the Chancellor replied, “The intermediaries legislation, commonly known as ‘IR35’, was introduced with effect from 6 April 2000 to counter the avoidance of employed levels of tax and national insurance by individuals providing their services through intermediaries. Disclosure of HM Revenue and Customs’ compliance data relating to the legislation would result in a risk of non-compliance with the legislation. Accordingly I am not able to provide the data requested.”[12] The July 2009 issue of IT Now, the British Computer Society magazine, reported that between April 2002 and March 2008 the Government had raised £9.2 million under IR35 legislation compared to the £220 million that it was initially expected.[13]
A long winded explanation by the authorities to show what we already know that they don’t know their arse from their elbow!
albion:
Toonsy wins so far.It means that the company wants you to be self-employed via a Ltd Company. This means that you will/should get a higher rater of hourly pay and along with being able to claim various things against tax means you should be ahead. Before getting over excited, you should factor in that you will be paying your own SSP, your own holiday pay, your own pension and if you stand for a day because of lack of work, then you won’t be getting paid.
You might also have other interests besides driving, like employing people or lettings.
Thanks for the info guys, sorry it took me so long to check my own post to see the replies 
Sand Fisher:
albion:
Toonsy wins so far.It means that the company wants you to be self-employed via a Ltd Company. This means that you will/should get a higher rater of hourly pay and along with being able to claim various things against tax means you should be ahead. Before getting over excited, you should factor in that you will be paying your own SSP, your own holiday pay, your own pension and if you stand for a day because of lack of work, then you won’t be getting paid.
You might also have other interests besides driving, like employing people or lettings.
But that isn’t the case here.
I am ‘proper’ limited because I run a company that owns multiple assets and employs people on PAYE.
In a blatant case of smug sanctimoniousness, I don’t pay myself a dividend because I think that if you take from society, you should put in. It also gives me the right to moan about how my taxes are spent and to criticize the likes of Starbucks etc. And all this Ltd company rubbish is just one big con a lot - not all - of the time, it gets rid of employee rights for a start.