This week...
Falling foul of IR35 rules
I have recently received a determination certificate from my client that has classified my contract as “inside” IR35 rules, even though neither the client nor their assessing agent has deigned to contact me to discuss the issue (‘Govt caves in to IR35 delay amid Covid-19 crisis’, Mar 18).
Furthermore, it is clear from the entire stance and tone of the assessment that it was biased from the outset, and indeed it is also clear that the assessor was most likely not even reviewing my contract, as statements they made were clearly incorrect.
Having discussed this matter with colleagues I discover that they too have encountered the same issues with this client.
I would be very interested to hear of any similar experiences contractors may have encountered when attempting to work in the rail industry.
Ian Skinner
Discouraging the reckless
I refer to your article concerning the £381,000 charge on the Financial Services Compensation Scheme occasioned by Simon Webster’s pension transfer mis-selling via his old company of Facts & Figures Financial Planners Limited (‘FSCS pays £381k against adviser’s old firm’, Mar 16).
You report that Mr Webster is now a senior adviser with a new company. One hopes he has learned from his mistakes and I absolutely believe that most people, him included, deserve a second chance.
Depriving a person of the ability to earn a living in the profession for which they have qualified is not a step to be taken lightly, and bans should only be used sparingly; for example, in response to deliberate criminality.
I do believe though that where an adviser has left the FSCS to pick up the pieces, they should be forced to make some personal recompense, perhaps via something like an attachment of earnings order.
No doubt Mr Webster and other FSCS defaulters will earn a lot of money in the future. Forcing such people to pay an enhanced personal FSCS levy every year, in a similar way to that in which student loans are recouped, will reduce the burden on other contributors.
Who knows, it might even help to discourage any future, potentially reckless, mis-selling?
Neil Liversidge
West Riding Personal Financial Solutions
Nobody is buying
I am in the position where my contract finishes at the end of March and usually, within a week, I obtain another (‘Govt caves in to IR35 delay amid Covid-19 crisis’, Mar 18).
But with the uncertainty of both IR35 and coronavirus, companies are reluctant to employ. And the ability to claim allowances from the state is small in comparison.
I also have a self-employed wife who has a small shop where footfall has fallen drastically. It sells children’s clothes and is well stocked up, but nobody is buying.
Tim Johnson
Yorkshire
What does ‘critical’ mean?
As a long time observer (and recipient) of regulation, I have often wondered what the regulator considers critical (‘FCA to postpone ‘non-critical’ work’, Mar 16).
From my own vantage point it has often seemed that the really serious issues have either been overlooked or taken far too long to address, while what might be considered as relatively minor issues have been attacked with a sledge hammer.
Harry Katz
HA7 Consulting
More support for landlords
I’m 73, have my own home and rent out a property to boost my income as I can’t live on just a state pension (‘Calls on govt to support landlords during coronavirus’, Mar 17).
If my tenant doesn’t pay rent then how am I supposed to pay my bills?
Lynn Watts
Hampshire
A lot more to IR35 reform
I am only a small fish in this and probably not one of the high permanent pay earners HM Revenue & Customs is after. But I am an auto technician who is given work via Autotech.
They have told me that it is up to the individual garage I work at to decide whether I am in or out of IR35, which does seem silly as I do the same job everywhere I work. The trouble is if you go via a direct umbrella company I have to pay two lots of national insurance. And the same as a limited company, I get no holiday or sick pay. If I do not work I do not get any money. I have an accountant to pay, plus insurance.
So, yes, we pay less tax but there’s a lot more to it than that.
Keith Waller
No ‘free’ payment holidays
Over recent years I have been dealing with clients with credit problems when arranging mortgages. The problems arise because they were offered ‘payment holidays’ from their mortgage and loan lenders to help with temporary financial problems.
The credit reference agencies have no distinguishing marks to determine a non-payment due to an agreed and lender-approved payment holiday and a non-payment due to the inability to pay the loan instalment.
So when the client comes to arrange a new loan or mortgage they have a major problem with a poor credit rating, and there is nothing to prove that the non-payment was agreed. Worse, if they have not caught up with the missing payments, the late payment note cascades for as long as the loan continues, and this can be for years until it is revealed.
What is the industry doing to make sure in these very serious times that lenders are not creating future problems, by offering their customers ‘free’ mortgage payment holidays?
What is being done to warn customers of this and what is being done to change the recording of approved payment holidays differently from unapproved non-payments?
Andrew Pritchard
Bradgate Financial Planning
