I noticed there were quite a few IT people posting here, any contractors?

How are you all coping with running your scoobs now IR35 is here.

Apart from the huge chunk of income that we've all lost, we're not able to run company cars anymore on the 5% Ltd company expense allowance.

I was going to go for a nice new Impreza on a lease, but the government has f**ked that one up for me.:0

 

Biffer,

I'm an IT contractor, working in London. I have some interesting documentation I can forward to you if you email me offline, re bypassing IR35. I have several contractor friends who have no intention of changing the way they work. I've been working for the same client for 3 years though now, and will probably await a new contract and the legal dust to settle before deciding what to do. At the moment, I've upped my salary to a reasonable level, and am tucking substantially more away in a pension, so the net tax hit for me is zero, and I may be able to retire a few years earlier

With regard to running a scoob through the company - I've always been led to believe that you were better off running cars in this price bracket privately, unless you do a lot of business miles?

Gary.

 

said this before and i'll say it again,

whoever voted labour should be shot.

 

Gary...

check your mail

Ian

 

GCollier Could you forward me that info please at pchinn@energis.co.uk I would be very interested in it. As for the 5% thing I believe it does not include any personal expenses, I’ve just got my car as a company car, my personal allowance has been hit, it's been hit for the last three years as I’ve had company cars for that period.
I'm of the understanding that the only thing that has changed is the dividend payments, and until the dust has settled and those clever accountants find a way round it, we like it or lump it, I’m still far better of as a contractor than a employed PAYE person.

Oh and I’ve not been shot yet????? As I’m not a greedy git, just a well paid one

 

For your info the 5% deduction is for expenses for running the company such as accountant's fees, an administrative assistant etc

You are still able to claim wholly, exclusive and necessary expenses such as mileage, accomodation away from home, subsistence etc. You may also still be able to claim a portion of your rent/mortgage etc.

As mentioned above, with good planning you'll still be much better off contracting under IR35 than going perm or PAYE.

For all of those of you who are being sold schemes to avoid IR35 be very wary. Especially the schemes where money goes into a trust and you take loans from the trust which never have to be repaid. It sounds good but 10 years down the line, you may not have the income anymore but you'll still have the liability on the tax benefit of the interest free loan (and the loan may be pretty substantial by then).

Cheers

Taff
(An accountant in the IT recruitment industry - no hate mail please )

 

Taff - No Hate mail just keep the good advice coming ( at least you aren't a pimp )

Fat_Biffer - It'll be a while before Mr Browns lot get round to nailing anyone. Let them find you.

 

Phill - I'll forward you the docs when I get home from work this evening.

Taff - This is not some dodgy "set up an offshore company and funnel funds around" type scam. It is evidence and reasoned and intelligent arguments, based in years of case law, which says that you can carry on working as you do, and that the IR are unlikely to challenge you, because if the case came to court they would lose. If you are interested, let me know, and I will forward you the stuff too.

Gary.

 

I work for (run a branch for a big It Contract agency)..plug stops there..

we've been inundated by requests to 'change our contract' in order for it to be IR35 'friendly'. We have succeeded in as much as our own solicitors have approved and the majority of our contractors (having shown it to their accountants and solicitors) are also happy with it.

Does it guarantee exemption..NO..no one can'yet'. but it'll help..none of our contractors has thrown the towel in and sold everything, gone perm etc..I think we are just trying to help keep the industry moving. And as Taff rightly says, proper planning on this is far better than taking paye.


I've not lost sufficient business for me to lose my Scooby I hope that continues.

Oh, and If your agency will not change it's T&C's..they dont understand the problem !!

 

GCollier,

Could you forward the information to me? Would be much appreciated.

nick_farrimond@caradon.com

 

Just waiting for the European court case...

 

Me too GCollier please. stuart@skcl.demon.co.uk

 

Re my earlier message - just be careful jumping into vehicles (of the tax variety) without considering all the angles.

There are some real dodgy characters out there pushing real dodgy schemes.

Gary can you send me the info also please.

Cheers

Taff

taff_lad@hotmail.com (yes I know its a cr@p email address)

 

I contracted for over two years, but then all the contracts for mainframe COBOL/PLI/DB2 dried up...

Pulled a few strings, and now I'm working permy as a project manager for a web-site solutions company.

Rose from Junior Developer to Project Manager with according pay-rises within 4 months - Hence I managed to (just) keep my MY99 Scooby.

My girlfriend loves it, I love it, and I'd do anything to keep it - Including crummy project management instead of a decent bit of coding.

Hey-ho!

 

If there's anyone who doesn't already know about this site, take a look.

 

I have to say I can sympathise with everyone here. I'm currently driving a Scooby RB5 as a company car, but the tax implications are beoming a little on the expensive side, so sadly Mr RB5 has to go. Bloody government!!!

On the upside, I'm trying to sort some finance out today to buy a Japanese Scooby, so things aren't always that bad.....

 

Andy,

Can you "opt out" of the Scheme and take money instead? If so, you can then claim tax relief as you're using your car for business. The "car allowance" has already been taxed and can't be taxed again...

Works for me... 1.6 Vectra or Scooby? Hmmm, now let me think

Nick.

 

Yeah, that is the sort of thing that I will be doing. I will get car allowance that will pay for part of the imported scooby.

Ive been having trouble getting finance, but it is looking good at the moment and I could be ordering my N reg WRX anytime shortly. I suppose this way I will be replacing good looks for more power.

I've now been told by my boss to try and sell the RB5, anybody want an RB5 with the whole prodrive kit and 13,500k on the clock for £24500???

 

hmm interesting, i've been contracting for 3 years and have always been told to run the car privately then charge my company on a mileage basis for business miles.

is that still the case ?

 

If you do over 18,000 a year talk to your accountant, as it may be better to go thorough the company, due to servicing and maintenance cost being more frequent (tyres, pad, etc, etc,).
I know the 20 odd pence a mile I can claim (after the first 4000) would not cover my costs even if I take in to account the loss of my allowance!
But speak to your accountant; get them to do a calculation on the year.
I did and now I drive a fully expensed STI, thanks Mr accountant.

 

Beware of over generous solutions from accountants!
We were realy stitched by our previous accountants who, while suggesting we could claim for all and sundry, would not let us claim for more mundane items. The outcome was a PAYE inspection which cost us a fair amount, in addition to which we've now been told their dodgy advice on company cars has meant us handing over about £1500 a year more that we should have!
As far as IR35 is concerned, I know of more contractors who are ignoring it that complying with it. The whole thing is just one big grey area, and in typical Labour fashion they still haven't even finalised the legistlation. Talk about making it up as you go along.
The only thing that is certain is that if they challenge you it all comes down to the old argument of employed or self-employed, and the fact is the the Revenue have not won a case on this point for some 15-20 years.
So it all appears to be about whether or not you,ve got the bottle.

 

Andy G

Your company must have a great car policy.

I only ever managed to get a Vectra when I was a permie and I had quite a senior position. Although the sales guys seemed to get what ever they wanted.

Who do you work for