Reply to post: Re: "This measure is expected to impact 170,000 individuals" . . . @LucreLout

It's happening, tech contractors: is pushing IR35 off-payroll rules to private sector in Finance Bill

Anonymous Coward
Anonymous Coward

Re: "This measure is expected to impact 170,000 individuals" . . . @LucreLout

Read the legislation. If you're deemed inside IR35, then tax is taken as the money passes through the intermediary (agent) or client, before expenses are taken. There is an allowance of 5% for expenses that will barely cover accountancy costs.

If you want to claim expenses, you will have to pay from your taxed income, add it all up, and then quantify them on your tax form, making it less likely that you will get them allowed by HMRC than if you are a permie (and you will have to wait until the end of the tax year).

If this comes in, it will kill working through personal service companies absolutely dead!

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