Reply to post: Re: Both feet, and the ankles

UK.gov tells freelance techies to slap 20 per cent on fees as IR35 tax hike looms

J P

Re: Both feet, and the ankles

You're probably all right about the numbers - there will be extra due diligence required at every layer as well, just to confirm who should be operating RTI on which payments, which will help to justify the "margins".

More worryingly, I've heard that since the new rules apply to ALL contracts, not just IT, and IR35 can catch any service supply that could have been offered by an employee (ie gardening, cleaning, legal work etc) public sector bodies are thinking about cancelling all their contracts with small business, and routing everything via Capita etc, just to avoid the analysis burden and related risk exposure if they get it wrong. Sure, it'll cost more than paying people direct, but it'll cost less than the risk of getting it wrong and having HMRC on their back for years.

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