They railroaded Truss out IMMEDIATELY after she tried to roll back ONE tax rule which affects who is responsible for determining whether a particular status called IR35 applies. Not the status itself, where the whole thing is a big assault on independent self-employment.
The TLDR there is that IR35 is a massive tax cash cow if it applies, and that placing the legal responsibility of that determination on the CLIENT ensures a lot of no-contest cases where businesses will just say it does without assessing it.
In practice it almost never applies, and HMRC has almost never won a IR35 case. Despite that, most businesses looking for contractors are folding to it then wondering why they can't find anyone. It's because IR35 causes so much tax burden that in-demand contractors have to quote at least £1000 per DAY to offset it, on top of travel and staying at a hotel for the week.
The few businesses who do assess it also treat the IR35 condition list as if a contractor meeting one point in it makes them liable. Nope, other away around - it just takes one or two conditions to fail for exemption to be the case.
The conditions in question are all about whether the contractor is a "disguised employee", in which case they'll be taxed as both an employee and as self-employed. They wrote the definitions to be vague, hoping to include basically everyone, a fortuitous blunder which served only to make it improbable to prove that anyone MEETS that definition. It's a list of points such as whether own tools are used, whether direct instructions are involved, all sorts of qualitative unprovable stuff.
All it's done is fuck up industry, they canned the only PM actually trying to fix it, and now Reform UK is ahead of both major parties in the polls.
[ + ] SithEmpire
[ - ] SithEmpire 0 points 3 monthsFeb 26, 2025 09:30:16 ago (+0/-0)
The TLDR there is that IR35 is a massive tax cash cow if it applies, and that placing the legal responsibility of that determination on the CLIENT ensures a lot of no-contest cases where businesses will just say it does without assessing it.
In practice it almost never applies, and HMRC has almost never won a IR35 case. Despite that, most businesses looking for contractors are folding to it then wondering why they can't find anyone. It's because IR35 causes so much tax burden that in-demand contractors have to quote at least £1000 per DAY to offset it, on top of travel and staying at a hotel for the week.
The few businesses who do assess it also treat the IR35 condition list as if a contractor meeting one point in it makes them liable. Nope, other away around - it just takes one or two conditions to fail for exemption to be the case.
The conditions in question are all about whether the contractor is a "disguised employee", in which case they'll be taxed as both an employee and as self-employed. They wrote the definitions to be vague, hoping to include basically everyone, a fortuitous blunder which served only to make it improbable to prove that anyone MEETS that definition. It's a list of points such as whether own tools are used, whether direct instructions are involved, all sorts of qualitative unprovable stuff.
All it's done is fuck up industry, they canned the only PM actually trying to fix it, and now Reform UK is ahead of both major parties in the polls.
[ + ] JustALover
[ - ] JustALover 0 points 3 monthsFeb 26, 2025 06:38:41 ago (+0/-0)