chartered
accountants, london accountants, small business advice, tax saving, banking
services, british accountants, business plans, ir35, business start ups, abell
morliss
abell morliss business
start ups ir35
business plans
british accountants
banking services tax saving small business advice london accountants chartered accountants abell morliss business
start ups ir35 british accountants business plans banking services small business advice london accountants chartered accountants
Innovative Improvement to Taxation Regime of
Small Businesses
… which takes
further the government’s deeply held belief in reducing burdens on small
businesses or….
Innocent
Taxpayer Oppression Scheme IR35
You decide how to view it!!
Updated 08.02.2006
IR35
Contract preparation
service
Executive Summary
Still don't panic!! - but read the bland statements from
the lawyers employed by Inland Revenue. What a shame the Inland Revenue decided
to interfere in a successful business area again - if only they spent so much
effort stamping out the cash (black) economy, we might be more +ve ! The govt.
pushed IR35 through despite the Lords greater wisdom.....
The Judicial Review hearing was
mostly a diversion rather than progress –
it’s now time to maximize opportunities within the new tax regime. The
cases of O’Murphy vs. Hewlett Packard and Battersby v Campbell (HM Inspector of Taxes) don’t really take us
forward. What we need is more cases brought with proper legal support based on
the current contracts all sensible contractors are now using. The Tilbury
Consulting case has greatly helped the cause of rolling back the tide of
repression. As the last avenue of legal action against the principle of IR35
has been lost, the PCG are (belatedly) doing this. The Lime-IT case at
Commissioners is a handy step forward as Accountax established a win on IR35
grounds. As HMRC has been so unsuccessful attacking companies through IR35 they
have dusted off other legislation recently (s.660) to try and stamp on
dividends going to other than actively working shareholders of small companies.
Although they have had some modest success, there is little to worry about if
you tread carefully, and of course you need a fab accountant to help…..
in more detail ……….
see IR35 notes
for some of our own extracts and comments. It grieves me to say it
but.... we now need to use red hot lawyers picking over the new rules, and
coming up with IR35-proof contracts. Principally new contracts need good
wording to stand a chance of circumventing the rules. Please contact
us for our latest service on this. Yes you can talk to us instead of
lawyers and get a result!!
Action points ……….
·
check your existing
contract. Do you feel self-employed in your style/relationship with the Client
? Think carefully - do you bill your
end-user or an agency ? Talk to the
right people !!
·
tell your client you
want a 'Charlotte' contract – that has been written by a knowledgeable lawyer!
– or better still ask us to do it for you
·
do ask your agency for
a 25% hike in your rate if a Charlotte contract is not possible?
·
write to your MPs and
tell them "you're plonkers messing up a successful aspect of the economy
in such a dopey brainless way. Speak to Abell Morliss for a sensible set of
ideas on this subject" - or words to that effect!!
·
stick with the existing
arrangements anyway as the laws of supply/demand time are kicking in in your
favour regarding rates for IR35 contracts – we now have a two tier situation.
The big question of course is how much the adjustment is…….
·
Spend a fortune
retraining yourself for an IT skill that is in mega-short supply and thereby
enhance your income.
·
Don’t let agencies fob
you off with greasy statements like “oh IR35 is not us, it’s a personal tax
matter drone drone….” If they shackle you with the wrong contract there is
nothing we can do to deflect HMIT. They have to offer you a sensible wording -
which we can help you with. We recently pointed out to a local authority their
standard contract had so many defects, that their Contractors would be deemed
employees for employment protection legislation, and they have hurried to make
amendments recommended by us!
Are you tossing and turning worrying about IR35 instead of
getting a good night’s sleep ? use our reassuring services for a gold star
cure!!
·
join the Professional Contractors Group -
please send them money !!!
back to home page
Any queries send us an email : absolutely no
obligation whatsoever enquiries dept.
top
-- end --