Anyone else fallen foul of this. Going to cost me somewhere between £5 and £10 k extra tax etc this year.



Basically a ploy to get rid of agency workers in the public sector.



I can do the same job working for a charity or a private company but if I do it for a local authority I get taxed at significantly higher rate.



Agencies trying to get us to sign up to umbrella companies meaning I pay tax on emverything cannot claim my expenses back .



Have to pay my NI as well as employers NI.

It's designed to stop people working what are, effectively, permanent roles but avoid tax and NI. It will mess plenty of people up.

It is a sign of how corrupt Britain has become - government and government bodies have been encouraging and organising tax avoidance.

Yet hitting the small man and recruiting 5000 new staff to look at small scale tax earners and ignoring the big companies.



The worst aspect is that it actually prevents people like me from travelling away to work and being able to earn more and pay more tax because all my travel accommodation and associated costs are no longer offset against tax.



Yesterday if I worked in the private sector everyone of these things can be offset.



It again is really hammering anyone who works in the public sector.



Doctor or nurse who does agency work for the NHS falls within IR35.



Doctor o r nurse who does agency work for BUPA does not.



Public sector workers once again paying the price of economic crash.

Agree 100%, we may as well just all pack it in and get a job at B&Q, I've wound my company up, it simply isn't viable to be a contractor. The agencies will fold as well, there will be many more homeless.

The work will still need doing.

But the wages won't be worth it. More people on benefits. People are living longer so services are more expensive, simple fact.

It's about time HMRC clamped down on this. Too many people taking advantage. To those complaining, no, it's not causing you to pay extra tax, it's bringing you inline with what you should have paid if you didn't set up a limited company in order to evade paying tax and more importantly national insurance



Regards



King James

So why is it only being used for those who work in the public sector and not those in the private sector ?

I would guess because as the government ultimately funds the employers they will det compliance. I would imagine that the government after seeing their success will feel confident in going after others.

You ever dealt with HMRC?

Yes.

As the director of a LTD company, within the last 3 years?

Every day.

So, given your comments, you don't take dividends, declare all earnings in full (paying appropriate NI) and no expenses offsets?

All those things are legitimate (provided for example, that dividends are properly declared) other than if the company is a PSC which is effectively a sham intermediary within what would otherwise be considered an employment relationship.

You have a problem in your dealings with HMRC - what is the nature of the problem?

I have no HMRC issues at the moment, but on the next contract, as D_R said, agencies are pushing people towards Umbrella Companies. But, hey, it's happened now so just make the best of it.

The legislation has been in place along time. The use of umbrella companies to me suggests sham.

Umbrella Companies are just an extra expense, a big changes have only recently come in (away frome home expenses etc.)

In the old days as director you used to be able to pay yourself a dividend instead of PAYE which provided quite a saving for both you and company - HMRC seem to have clamped down on this these days

Dividends can still be taken without a problem. A problem only arises where HMRC considers the company to be a personal service company where the nature of the relationship between the one-man and his company's customer(s) is akin to employee and employer.

I just hope it applies to Tony Blair, Gordon Osbourn, "contracted" TV presenters etc. and the rest of us equally.

It does apply to TV presenters at BBC as I understand it.

So long as it's fair, the whole system needs a rethink, it's way too complicated and riddled with loopholes. Maybe we'll start taxing the big corporates as well. (Too much to hope for) Also need to look at sports, bands, everything.

These issues arise - like part-time jobs - due to Gordon Brown's stealth tax. He kept increasing the rate of employers NI which has caused great upheaval and distortions in the labour market. Yet another example of our beloved politicians' penchant for counter-productive, ill-thought out policy.