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Not surprising
This decision doesn't surprise me.
The basic principal of self-employment is that the relation between business and worker changes. Once the commissioners are convinced of that fact then IR35 ceases to be.
Cameron Clegg
Can someone who knows one of these two chaps, just get them to abolish IR35 and save us all a headache. Let people decide what they want to be, ie a co or an employee, if HMRC dont like it then they can change the tax rates and abolish the small company rate say, simples.
IR35
IR35 is the most cumbersome tax to operate and often leaves people with a great deal of uncertainty and stress.
It is typical of the previous government (probably inspired by Europe) which until Alistair Darling delighted in bringing in legislation and taxation complexities without sufficient resources to monitor them.
At least Mr Darling simplified CGT with the 18% rate and, dare I say, the abolition of the 10% band.
A system is unsustainable when the professionals cannot understand the rules-let alone the taxpayer.
Please simplify our system-get rid of bureaucracy. Coalition please engage in a demolition of red tape and the nanny state.
IR35 causes small companies to pay employers NIC when there are no benefits of employment eg sick pay. This is unfair and should be abolished. Why not restrict the tax credit on dividends to the amount of employees NIC paid by the shareholders in effect making them pay employees NIC in these businesses. There are other factors to consider as well but I need to get some work done........
Ivor Client
careless - i think so....
Surely the REAL error was M Assive Co (Novasoft) being dozy enough to employ self-employed contractors. They should be taking professional advice before entering into vague arrangements which leave them open to claims.
It was an open goal for HMRC, which they failed to hit due to their own inabilities. Mr. Brajkovic is very lucky to get away with it also.
Careless?
Novasoft *is* the contractor's company- he's not self-employed in the tax sense, he's an employee of his own company. He's self-employed in the layman's sense of the phrase, i.e. he's his own boss.
careless 2
Hmm, yep I think you missed the point. Theres no self emplyed peoples involved in this or any CIS deductions for that matter, but thats another can of worms and who brought up CIS anyway
Huge Congratulations
Congrats to Novak Brajkovic - I know from personal experience that he must be one very relieved gentleman right now. I thought my case was long and stressful, but mine was nothing compared to his massive long period of uncertainty.
Lisa (Lime-IT)
careless - i think so 2
well it's funny how this article in a supposedly professional environment is carelessly worded, and misleading -terms like "self-employed " are precise, and should only be used correctly? My own confusion arose as i have only just had my last self-employed IT contractor finally cave in and go limited, to his great disappointment. he had a contract with a massive operation who should have known better.
so in fact it's the company that fought the appeal not him? and it was the company facing the massive tax assessment not him? it makes a bit more sense now.
Financial Institutions
Trying telling the FI's that you are employed and work for your own Ltd Company. They treat you as a self-employed person, wanting salary, dividends and profit before taxation. Euroland treat the self-employed as a "worker" who can claim holiday pay and other PAYE benefits. etc. etc. etc.
Ludicrous!!!!!!!!!!!!!