MNC2000

[MNC2000 @MNC20002]

@TJiMTS 2/2 Outside the reforms you can build up cash reserves and divert some/all to pension retrospectively leaving cash in the company for emergency / investment after CT paid on amounts kept in company.

[MNC2000 @MNC20002]

@TJiMTS 1/2 It’s a big issue if inside IR35.
PAYE assumes steady income which is not the case on contract work, PAYE cliff edges & double NI can be mitigated through pension. But = min £ reserves to support contractor between contracts.

[MNC2000 @MNC20002]

@AnetaI7 @TJiMTS Pretty much all you can do is divert income to a pension. Trouble with that though is as a contractor you can’t build the cash reserves needed to support you between contracts 🤷‍♂️

[MNC2000 @MNC20002]

@RicardoMighty It would be great to follow the money back to the client and see what their budget is and see all the parasites in the supply chain.
I really can’t believe clients budgets are lower than they were 2,3,4 years ago 🤷‍♂️

[MNC2000 @MNC20002]

@arfurenglish @glancaster2703 @kevinhollinrake @KemiBadenoch @UKLabour @Conservatives I can’t disagree anymore, I resisted this way of thinking and put it down to poor understanding by HMT on how the contract market worked.
But successive reform and rhetoric now just feels at best incompetence, at worse targeted 🤷‍♂️

[MNC2000 @MNC20002]

@arfurenglish @glancaster2703 @kevinhollinrake @KemiBadenoch @UKLabour @Conservatives I was listening live to Osborne’s budget in 2015 when he announced Div tax. Starting dancing around the room as it meant IR35 wasn’t necessary. I was stunned when they didn’t abolish it, keeping IR35 made no sense and still doesn’t 🤷‍♂️

[MNC2000 @MNC20002]

@glancaster2703 @kevinhollinrake @KemiBadenoch Once Osborne introduced Div tax, IR35 was totally unnecessary.
It Just created delays to hires and increased costs to both contractors and clients.
Totally destroyed a functioning market which in turn hit growth and made economic recovery from pandemic so much harder 🤡🤡🤡

[MNC2000 @MNC20002]

@BDFitzell @Craig82Scott @GBNEWS IR35 won’t affect him. Ltd comp makes perfect sense to manage winnings, sponsorship, image rights and exp, the latter of which will include paying his support team.
Once expenses considered, & income taken from company, after corp & Div tax % taken similar to PAYE/Ni 🤷‍♂️

[MNC2000 @MNC20002]

@arfurenglish @kevinhollinrake @KemiBadenoch Agreed, although difference now is they are fighting Reform as well as Labour for votes and it won’t work this time.
I don’t think reform is the answer, but I’ll vote for reform to give Con/Lab a bloody nose and the push to remember what they stood for 🤷‍♂️

[MNC2000 @MNC20002]

@arfurenglish @kevinhollinrake @KemiBadenoch It’s a slow burn, but Conservatives finally starting to realise that screwing over a large part of their voter base - IR35 reform, loan charge, covid exclusion, frozen tax thresholds, & highest tax for 70yrs probably wasn’t a good idea.
But still not getting my vote back 🤷‍♂️

[MNC2000 @MNC20002]

@clownltjokerrt @TheCrawlTool @RupertLowe10 Broadly agree with your post, but little £ difference now between PAYE/Div tax when factoring Corp tax paid to allow Div distribution.
Main advantage is Div tax levied against previous years realised profits, PAYE assumes similar future income each month which isn’t guaranteed.

[MNC2000 @MNC20002]

@CharlosFarlos @MattGubba Similar position - Ltd 30yrs old next March. No growth last 8 years, IR35 impact on market a major underlying reason plus both Tory & Labour gov’s seemingly targeting micro & small biz.
Given up on biz growth - focusing on topping up pension & retirement (I’m 60) 🤷‍♂️

[MNC2000 @MNC20002]

@arfurenglish @Eyespeeled3 @MerrynSW The many Div tax increases have eroded tax advantages of a Ltd. The client cost & risk of assessment, the stifling of viable contracts, & inability for those inside to expense biz cost means IR35 is just a drag on growth.
Scrap IR35 & inject some growth into our economy 🤷‍♂️

[MNC2000 @MNC20002]

@arfurenglish @itcontracting Same here, used hotels in UK where 80% + of occupancy midweek was contractors. Service sector impact must be massive.
IR35 also curbs investment as I need 4X cash reserves to survive between contracts due to reform impact on market.
So much harm to growth from reforms 🤷‍♂️

[ContractorUK @itcontracting]

IR35 was sold as fairness.

What it delivered, writes Nadine Drelaud, is SME closures, zero-rights roles, offshoring, and rising benefit claims - none of which HMRC includes in its impact assessments.

The reforms pushed legitimate businesses to shut down, drove skilled professionals into umbrella-only models, and accelerated the offshoring of high-value UK work - all while removing the flexibility that kept many self-employed people in the workforce.

Yet HMRC continues to call IR35 a “success” by measuring only PAYE receipts, while avoiding the full data: lost VAT, lost corporation tax, lost employer and employee NIC, lost pension contributions, rising UC/JSA claims, and UK contracts moved overseas.

Until that information is published, the true impact of IR35 will remain hidden.

Read More: https://t.co/v3U9bvx7Gy

[MNC2000 @MNC20002]

@slcroucher @ZiaYusufUK Same, IR35 destroyed a buoyant market where clients could ramp up/down resources to deliver projects quickly.
I look at risks I took to grow business and diversify my skills knowing there was plenty of work if I needed more income. That’s gone - zero growth last 7 years 🤷‍♂️

[MNC2000 @MNC20002]

@LairdSummerisle @MelJStride Same here, 20 years of year on year growth but since IR35 reforms no growth.
So much damage done to the finances and opportunities to what was Tory’s core vote.
Mainstream parties are dead - I’ll vote reform now 🤷‍♂️

[MNC2000 @MNC20002]

@Exogynous @trussliz I know there are a number of factors, but mapping the many IR35 reforms to the graph since 2000 seem to correlate 🤔
At best the wrong thing to do at the worse time !

[MNC2000 @MNC20002]

@RS73448285 @MelJStride @Conservatives Keep gaslighting Mel, as historically a core Tory voter, it’s good to be reminded why I wont be coming back.
You decimated contracting with IR35, no growth in Ltd since Brexit & IR35 reforms after 20yrs continual growth. Now just hanging on so I can retire in 4 years.🤷‍♂️

[MNC2000 @MNC20002]

@gonetothedogs73 @KemiBadenoch Yep, Historically a Tory vote who naively thought a Tory Gov had the backs of small business.
But frozen tax thresholds, IR35, Loan charge, and excluded during Covid said otherwise.
Reform for me now if nothing more than to make main parties listen 🤷‍♂️