I expect, as others have said, the valuation is based on profit, not fees as it's a different beast to buying a 'normal' practice. I also expect that Sovereign Capital know something we don't that could lead to a huge increase in the size of their market and I'm guessing that that isn't HMRC clamping down further on IR35.
"Which is why the above statement above from some about advance quarterly tax makes no sense at all..."
For that one needs to have a sense of vision, attitude & wisdom. People are more afraid to acknowledge how they are playing with instruments & vehicles like self-employment & PSC's. Majority of them are b*llocks & someone said they generate employment; yes that's right no one is arguing about that; problem is employment is generated only between Husband & Wives & accountants know this very well....Ofcourse for people like this advance tax wouldn't make sense at all but super profits & dividends makes all sense..b*llocks..
I think this is the most ill-educated response I've ever read to a subject on AW, and that's some going. Is that you Hector?
No, there's no play on words. It's a consequence of being able to offer my services to multiple companies, rather than one as employee and subsequently earn more - which, although it may be taxed at a lower percentage, still raises more revenue than a permanent employee pays in a similar role/industry.
As a contractor, HMRC gets far more in tax from me as a Ltd company via corporation tax and VAT than they ever would from me as an employee. This, to me at least, just demonstrates how simple minded the current legislation is.
The whole reason why we have IR35 in the first-place is to prevent situations, such as the BBC and HMRC themselves (!) letting employees go on a Friday and re-engaging with them through a Ltd company the following Monday to reduce their own costs associated with employement. Nothing more, nothing less - and that's as far as the scope of IR35 should go. Instead, it has been manipulated into something far above and beyond what it was ever intended to resolve.
My answers
I expect, as others have said, the valuation is based on profit, not fees as it's a different beast to buying a 'normal' practice. I also expect that Sovereign Capital know something we don't that could lead to a huge increase in the size of their market and I'm guessing that that isn't HMRC clamping down further on IR35.
wow.
I think this is the most ill-educated response I've ever read to a subject on AW, and that's some going. Is that you Hector?No, there's no play on words. It's a consequence of being able to offer my services to multiple companies, rather than one as employee and subsequently earn more - which, although it may be taxed at a lower percentage, still raises more revenue than a permanent employee pays in a similar role/industry.
As a contractor, HMRC gets far more in tax from me as a Ltd company via corporation tax and VAT than they ever would from me as an employee. This, to me at least, just demonstrates how simple minded the current legislation is.
The whole reason why we have IR35 in the first-place is to prevent situations, such as the BBC and HMRC themselves (!) letting employees go on a Friday and re-engaging with them through a Ltd company the following Monday to reduce their own costs associated with employement. Nothing more, nothing less - and that's as far as the scope of IR35 should go. Instead, it has been manipulated into something far above and beyond what it was ever intended to resolve.