Budget commentary - Telegraph

[webberg]

£2,000 hit for contractors who use limited companies to pay less tax - Telegraph

This is a piece in the Telegraph recently.

Big Group was asked for the commentary and numbers and the journalist is keen to follow up with more numbers and thoughts as apparently a lot of Telegraph readers are contractors.

The sort of data being coordinated by others here would be useful to her and I'm sure she'd like to speak with you once it's avaialable.

[jamesbrown]

£2,000 hit for contractors who use limited companies to pay less tax - Telegraph

This is a piece in the Telegraph recently.

Big Group was asked for the commentary and numbers and the journalist is keen to follow up with more numbers and thoughts as apparently a lot of Telegraph readers are contractors.

The sort of data being coordinated by others here would be useful to her and I'm sure she'd like to speak with you once it's avaialable.

I don't see any good coming from this, quite likely the opposite. The tone of the article is predictable, namely that a "large" portion of contractors are incorporating for tax purposes, when they're clearly not. The junior staff at the DT who write the majority of these personal finance articles don't have the technical ability or investigative spirit to write accurate or balanced articles.

[eek]

The second part of the headline is wrong. I stopped reading after that.

I don't use a limited company to save tax, I use it because by law to work through an agency I need to use either an umbrella or a limited company. And I don't want any random additional party between me and my money...

[Dan@OrangeGenie]

£2,000 hit for contractors who use limited companies to pay less tax - Telegraph

This is a piece in the Telegraph recently.

Big Group was asked for the commentary and numbers and the journalist is keen to follow up with more numbers and thoughts as apparently a lot of Telegraph readers are contractors.

The sort of data being coordinated by others here would be useful to her and I'm sure she'd like to speak with you once it's avaialable.

Thank you for sharing, 750,000 contractors though? - hmmmm

[northernladuk]

The second part of the headline is wrong. I stopped reading after that.

I don't use a limited company to save tax, I use it because by law to work through an agency I need to use either an umbrella or a limited company. And I don't want any random additional party between me and my money...

Unfortunately for every one of you there are a many 100's more people that left permie land because contracting rates were higher..

[eek]

Unfortunately for every one of you there are a many 100's more people that left permie land because contracting rates were higher..

True, but that is not why contractor's use limited companies.

If we could be self employed many people would be... However because the agency rules forbid employing self employed people and because its better for us to have limited liability we use limited companies...

Yes limited companies result in us potentially paying less in tax but that is just a side effect..

[d000hg]

You might not have set up a Ltd to pay less tax, but you are using a Ltd to pay less tax assuming you follow the low salary + dividends model. So the headline is technically correct.


edit: for the record I do this too, it's a benefit of working through a Ltd I see no reason not to make use of.

[expat]

True, but that is not why contractor's use limited companies.

If we could be self employed many people would be... However because the agency rules forbid employing self employed people and because its better for us to have limited liability we use limited companies...

Yes limited companies result in us potentially paying less in tax but that is just a side effect..

Quite so. I wonder if NLUK is COTBAC??

[webberg]

Shaping the narrative is important and you have to start somewhere.

People "saving tax" sells newspapers.

Equally "HMRC acting like playground bully" sells newspapers.

Pile in with comments and correct the article and make this point.

[DotasScandal]

Pile in with comments and correct the article and make this point.

This