IR35 Revisions of 2017 and 2021 are being replealed

[Suff]

From April 2023.

Most people tend to think of IR35 being for those incredibly expensive contractors who turn up in suits every day (well T shirts on Teams these days), to collect their exorbitant fees from the client.

In fact the biggest impact of the 2021 IR35 change would be your Amazon and DPD drivers and your local "hand car wash" owner. The government has spent most of the last decade forcing clear self employed staff into limited companies. Then hammered them with IR35 and turned them into employees paying a net 62% of their income in taxes and NI.

This huge turn around in Kwarteng's mini budget will have huge ripples through the employment market. Not least of which is that I can stop telling every agency that has a "critical" and "Urgent" need for an IT security project manager that I don't work under IR35 and that they'll just have to go and find another PM who can help them fix their HUGE security holes. Including all those Government departments who kicked off all those security projects in the last year....

More importantly Truss just unlocked between 0.5m and 1.5m votes and made them more disposed to voting for her at the next election. I expected some moves but the moves they made have been dramatic; to say the least.

[Workingman]

Suff, on VV we are mostly OAPs or employed by an employer, even if only part-time, so don't expect too much traffic.

I was once a contrator so do understand, but as an OAP I have other things to contend with.

[medsec222]

I have to say I am lost on that one Suff. Who knows how Liz Truss' budget will pan out. As a country, I think we need it to be successful so the pound taking a dive isn't good news. I couldn't quite work it out why she abolished the 45% rate of income tax on the high earners. Surely the cut should have been at the other end of the scale when she could have raised the rate to start paying income tax up to £15,000. Wouldn't all those working have benefitted from that, not just the high earners.

[Suff]

Sure they would Meds. But most of them don't vote Conservative. Also it would have done nothing at all to encourage economic growth. What is the point of "giving" a bunch of money to people who will do little more with it than have a few more beers or a few more Pizza's, whilst putting 100,000 of them out of work?

The people who were swept into IR35 were the risk takers, the people who go for it, who build businesses and grow the economy. Raising the rate at which you pay income tax, at the same time as punishing the people who make, drive and grow the economy; does nothing to help when the economy is shrinking. You have to encourage the economy to grow and a 45% top tax rate and IR35 do neither. What they do is a smash and grab on money for treasury coffers.

Also, again, people who earn £15,000 per year or less only care about one thing. Where the money is coming from. Tories do not, traditionally, just give away money. Unlike Labour who think they are Robin Hood. On the other hand people who earn enough to be paying 45% tax care about two things. First where the money is coming from and second where the money is going.

This budget is about two things. First and foremost, incentivising traditional Tory voters to vote Tory. Second to incentivise those who who build and grow an economy to continue to do so and also to take risks to do so.

It is nothing to do with "giving" anything to anyone. They fully expect that the 5% they reduce on higher rate taxes will be recouped many times over in the mid range through the economic growth it creates.

Labour, who fully believe in the message that they are Robin Hood, don't like it. Quelle surprise.

[Kaz]

Ah, trickle-down economics, that old chestnut The Tories have had twelve years to "build and grow" the economy, yet we seem to be in the cart somewhat. Apparently Labour are twelve points ahead in the polls, but even if they get in next time it will take many years to overturn the damage that twelve years of deliberate austerity has wreaked on this country. Not to mention the B word, that elephant in the room! Luckily they can blame most of the B word damage on covid-19

That budget was all about disaster capitalism and the ERG and you must know that!

Stop press: Labour have just voted through supporting proportional representation! Hallelujah, about time!

[Workingman]

Well said, Kaz. I agree with all that you say.

I want a government that works for all of us, rich and poor.

That is not the current Truss version, Far from it.

Apparently letters are aready being handed in.

They kow that she and and Kwasi, are disasters.

[Suff]

That budget was all about disaster capitalism and the ERG and you must know that!

That budget was pure Thatcher. The ERG did not exist then and the majority of the "wealth" Blair "redistributed" was made by the Thatcher reforms. Neither Cameron, May, nor Johnson were "trickle down economics". T They were "Buy the votes". Just like Labour.

Well if Labour were to win and actually bring in PR, they would be responsible for the remaining decades of coalitions and minority governments that follow. Up to them, up to the people. I just want the people to actually vote for it, not for Labour and one manifesto promise of many.

[Kaz]

How anyone can defend the state of this country at the moment beats me

[Workingman]

What I would like to see is the LibDems also vote for it at their conference then get into a pact with Labour. Let them each agree to stand down in seats where they came third or lower and the other came second behind the Cons in order to attempt to remove the Tory.

They can then form a coalition government and bring in PR.

Yes, it's dirty, but we need to do something to end this version of Conservatism.

[Suff]

How anyone can defend the state of this country at the moment beats me

I don't know, plenty defended the state of the country in 2008. They are not even the slightest bit comparable. Plenty also defended the "spend our way to glory" implemented by Brown at the time.