IT employment - totally NB

The Treasury, for one, believe that low productivity (as compared with US) in UK IT is a serious impediment to UK growth .... they don't think we are getting the benefit from implementing IT that we should. That seems to suggest that there's a serious shortage of skills somewhere ...

There's a similarity to 25yrs ago when manufacturing, which then employed 75% of the country, were also so chastised ....

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"Another major threat, is the treatment of husband and wife owned companies - but that's another story."

What's that all about then? We are as above......

<hr width=100% size=1><A target="_blank" HREF=http://static.photobox.co.uk/public/images/45/99/10714599.s.jpg?ch=97&rr=16:00:39>Nirvana</A>
 
There wasa case recently where a H&W team were challenged by the IR for evasion of tax by putting wifey on books when she did not take any part in the company. I believe the case hinges on the fact that wifey was not a joint shareholder in company when it was set up. H&W lost and had to pay 1 years back tax. At least it wasn't the 6 years the IR were looking for.

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Now you spoiling fer a fight or sommat? You imply that eiher I look 68 or that you look like 33 both of which statements are candidates for a Glasgow handshake round my neck of the woods.

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Chris's explanation is close to my understanding too. Not sure about the relevance of whether she was a shareholder at the beginning or not, though. Also tax evasion (illegal) is different to tax avoidance (legal). There is a considerable grey area in the middle, where all the confusion arises, even for those who are qualified and employed to understand it.

Basically, if H &W are equal shareholders, eg one share each, then the company pays them equal dividends. The company can also choose to pay them equal salaries, deducting PAYE and NI as appropriate, to minimise the total tax burden on the couple. Gordon Brown is challenging this where one partner does all the work, ie earns all the revenue for the company, and the other partner does very little. Again, this will come down to precendent at tribunals, like the case which Chris mentioned.

PLEASE DO NOT take my explanation as gospel - speak to your accountants, or visit the IR websites for their version.

<hr width=100% size=1>I can't be bothered with a footnote - it's usually rubbish anyway.
 
Got similar problem with IR, wife does our accounts, as she does not/is not bothered getting into tax, books enough to cover her tax allowence. Now IR are saying she is not doing enough to charge the wages, interesting who fixes rates for a job now?.
Were looking at going Ltd for same reason, looks like we could fall foul of the same thing. It's back door tax, split allowences for a couple, then try and stop one half using there allowence, yet another nail.

Brian

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Ummm.. this is not meant to be an advert, but anyone interested in IT contract work for Holland/Belgium, please contact by pm. I have some information which may help......

Cheers, Rene.

<hr width=100% size=1>I came, I saw, she conquered (the original Latin seems to have been garbled).
 
I have heard it said that permenant work is only for those who haven't discovered contracting yet - but it was back in 2000 - not recently.

Another recent trend has also turned the tables. In the past, some people would take on a contract in between two permenant jobs, eg if they chose to leave or were forced to do so.

Nowadays, it is common for those who prefer contract or consultancy work but struggling to find anything, to take on a permenant job purely as a gap filler. When the market picks up, or a contact opportunity appears, they resign the permie job.

In effect, permie jobs and contracts are becoming one and the same thing in many IT roles. Neither have any long term commitment by either party, and the employment benefits are not that special either.

<hr width=100% size=1>I can't be bothered with a footnote - it's usually rubbish anyway.
 
and 'jobbers' commit 'permicide', which is the act of accepting a permanent job offer with your current contract employer......

<hr width=100% size=1>Jeanneau 35 - only 13,272 lbs displacement, not even 6 tons,what a lightweight!!!
 
Wish they'd pass on the message to several organisations I've worked for.. current and present..

My experience to date is IT skills from basic ECDL up not being prioritised as they should.. in terms of staff training and recruitment etc

Generally people prefer to contract out as far as they can and under resource the administration / managing of IT Contracts..

System Specification is vague (see CSA) with no one taking a full handle and assuming they can delegate down...



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Good article in the latest Economist regarding outsourcing SW development to India. Compare $2000/day with $60 and it makes sense, jusst like manufacturing this is the way it will go. To survive and prosper you need to specialize in the "business" aspects of implementing IT, processes and streamlining otherwise i'd turn to plumbing. IMHO programming is gonna be like car mechanics, just bolting bits together.

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Re: becoming one and the same

My last ‘permanent’ job turned out to be a one year contract. I upgraded their systems and migrated everything across, then they made me redundant as it was all running so smoothly.

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After Y2K, the market went very quiet. Add IR35, a liberal dose of H and W companies and contracting as we know it has gone very close to dead. There's still work about at reduced rates, in my own experience very reduced, and it's getting that contracting isn't worth the hassle. However if you're young enough, fit enough, and have a specialist skill, the permie market isn't doing too badly.

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