MTD always appeared a bull in a china shop approach to innovation.
"Everyone must adopt
Everyone must adopt now"
They would have been better off doing what organisations do when they want consumers to migrate:
* make the new service available
* make it easier to use
* offer benefits for using the approach
Also, if they have already accepted on-off-payroll conditions, ie PAY under an umbrella they can't go back as HMRC will come back in 3 years time and determine that you were within inside IR35 all along, cough up.
The people who have gone abroad aren't coming back.
The jobs the banks have already offshored to infosys, wipro, cognizant, accenture aren't coming back.
Dawn has cost the taxpayer a bundle. And it aint' coming back.
Standard umbrella treatment - deduct holiday pay, and then give it back, statutory sick, basic auto enrolled pension (which they can back out of after a week)- all deducted from the contractors gross (old) rate.
So they lose out by having to pay full NI, employers NI, apprenticeship scheme levy.
How engagers are minimising risk? Blanket bans on PSCs.
Engagers are leaning on intermediaries as well - I know of one bank who gave all their contractors the choice of go umbrella or go home, and then forced their consultancies to do the same with their contractors.
From what I've seen HMRC have failed to prove that tax is due (from the employee) in every case they've taken to court.
They issued guidance in 2010 stating the loans don't work - I don't see why they didn't introduce legislation making them taxable then.
The schemes would have stopped, contractors would have used PSCs and all due tax would have been collected.
Concur with D Chaplin - we are seeing firms demand contractors accept deemed inside IR35 for new contracts, with the prospect of all new extensions following the same pattern which will expose the contractor
My answers
MTD always appeared a bull in a china shop approach to innovation.
"Everyone must adopt
Everyone must adopt now"
They would have been better off doing what organisations do when they want consumers to migrate:
* make the new service available
* make it easier to use
* offer benefits for using the approach
https://www.google.co.uk/search?q=margaret%20hodge%20family%20trust%20ta...
first search result is from some dodgy website accountingweb.co.uk - but the other should provide enough info
Also, if they have already accepted on-off-payroll conditions, ie PAY under an umbrella they can't go back as HMRC will come back in 3 years time and determine that you were within inside IR35 all along, cough up.
The people who have gone abroad aren't coming back.
The jobs the banks have already offshored to infosys, wipro, cognizant, accenture aren't coming back.
Dawn has cost the taxpayer a bundle. And it aint' coming back.
Standard umbrella treatment - deduct holiday pay, and then give it back, statutory sick, basic auto enrolled pension (which they can back out of after a week)- all deducted from the contractors gross (old) rate.
So they lose out by having to pay full NI, employers NI, apprenticeship scheme levy.
How engagers are minimising risk? Blanket bans on PSCs.
Engagers are leaning on intermediaries as well - I know of one bank who gave all their contractors the choice of go umbrella or go home, and then forced their consultancies to do the same with their contractors.
From what I've seen HMRC have failed to prove that tax is due (from the employee) in every case they've taken to court.
They issued guidance in 2010 stating the loans don't work - I don't see why they didn't introduce legislation making them taxable then.
The schemes would have stopped, contractors would have used PSCs and all due tax would have been collected.
Concur with D Chaplin - we are seeing firms demand contractors accept deemed inside IR35 for new contracts, with the prospect of all new extensions following the same pattern which will expose the contractor