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Great articles David
If you check Hall v Lorimer http://www.bailii.org/ew/cases/EWCA/Civ/1993/25.html it is eight pages and involved three Lord Justice’s two Queens Council QC’s and two solicitors and their firms. In the Brexit world the Govenment and HMRC are crazy to foist this level of complexity onto ordinary working people and their accountants. They have to have a tax based solution; probably centring on radical reform of national insurance.
With the 'dividend tax' (read Ee's NI) now in place the revenue 'lost' through PSCs is going to be much lower than previously anyway, so the cost/benefit calculation for HMRC pursuing these cases will be even more tenuous. As David says, just whack Er's NI on at the engager's end and be done with it.
...adding 'ers NI:
But that would involve someone at HMRC having to admit that the whole thing is a government generated mess...and that will never happen.
Well if the government want more tax why not just put dividend tax up to 20% for non plcs that should do it...and no marvin and no arguments
This is about the public sector.
Who is in charge of the public sector? The government.
If they just told public sector bodies that they were not allowed to engage people in this way would that not be a great deal less complex and much cheaper (for the government)?
Welcome to the government's idea of "tax simplification". IR35 has and always will be a nonsense. It needs scrapping and starting again, not amending.
Great series of articles, by the way. The illustrations are so good at highlighting the crass stupidity involved and I love "Marvin".
Meanwhile, there will be a vast exodus of contractors from the public to the private sector. It will be harder to hire IT contractors and so the government better think twice about changing any laws. But then they can't help themselves!
Engaging with the IR35 legislation produces much the same effect that resulted from Marvin's various dialogues with other machines and life forms; you quickly lose the will to live and if you could meet with the person who came up with the idea for IR35 you might be tempted to rearrange his/her neurons with a heavy blunt object. Some employers despise employer's find national insurance as objectionable as a Vogon and will take any measures necessary to avoid paying it. The entire tax system is creaking and requires a complete rethink.