Quote:
Originally Posted by ianch99
As for your IR35 story, you are are just peeved that you are paying more tax, just like a PAYE employee would be which is what IR35 was all about:
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To start with, HMRC state that IR35 should be an individual assessment and they make it clear that it should not be a blanket decision by an organisation. The client should not be completing an assessment without input from the individual involved. My assessment contains incorrect information, because the individual who completed the assessment made no contact with me to obtain the answers given. The answers to the questions in the CEST tool were chosen to influence the outcome by an individual who had no details of what work my company was actually undertaking.
I was not acting as an employee, I invoiced the client for the services on a day-rate basis that my limited company was undertaking for them. I set the business up specifically so I could offer engineering services which I intend to run part time into early retirement. I made the mistake of signing a contract with one client that contracted my business for a large number of days.
It's a bad situation all round, because I am constantly having to say no to the client when I am asked to do something that would involve a cost to myself or use of facilities owned or paid for by my business. The client as a result is getting less for their money.
Yes, HMRC is collecting a hell of a lot more money in tax off me, but as I have substantially increased the day rate to cover the increased costs I actually have more money in my pocket. Also I don't have any overhead costs involved with this client, and I now sit back and laugh when it takes months to obtain small items that required urgently when I was obtaining them next day and swallowing the cost in my business.
I had been working on the development of a piece of equipment which I intended to hand the design to the client (I'm an engineer not so much a money grabber). Instead I have a third party company that has seen it recently and have asked about purchasing my prototype and the rights to the design. I'm most likely going to sell it to them and let them sell the product to the client.
No one has won, in fact the taxpayer has lost as they are the ones paying for it. My beef is not so much the extra tax I'm paying as I have said it's been offset with the extra costs I'm charging, it's that I have been forced to be an employee of a fictitious company as a means of collecting it.
Without knowing the details you couldn't begin to understand how unworkable the situation is on a daily basis, especially when it's fairly urgent and important.