Originally posted by northernladuk
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Worst case scenario
Collapse
X
Collapse
-
-
Originally posted by expat View PostInteresting. Thank you for the correction. I used a different site and I am afraid that I misread the results.
I'm obviously too tired to think straight today, let me just get back to the client's work.
I calculated that £10k of expenses will cost me £22k by the time I pay the dividend tax on it and account for the lose of child benefit as my income went from £40k to £62kmerely at clientco for the entertainmentComment
-
Originally posted by northernladuk View PostI thought the worst case scenario was to get hit by a meteor the day before the IR35 announcement so wiping out 99% of life on the planet and to top it off we find out that we are all hit by IR35 in the announcement.
Further to that, it will end forever any threat (real or imagined) of global warming, so you will not only be spared more "green" taxes, you also won't have to read any more posts on the topic in General. It seems almost (not quite, but almost) worth sacrificing 99% of humanity.Comment
-
Originally posted by WordIsBond View PostNo. In this scenario, if you get hit by IR35, it means you are part of the extremely fortunate 1% who survived the meteor. How can someone that lucky be in the worst case?
Further to that, it will end forever any threat (real or imagined) of global warming, so you will not only be spared more "green" taxes, you also won't have to read any more posts on the topic in General. It seems almost (not quite, but almost) worth sacrificing 99% of humanity.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by northernladuk View PostWell if 100% of plant life gets wiped out we will have a lot less agents to deal with as well.Comment
-
Originally posted by eek View PostThat's not right.
Using the CUK site on £400 a day, £10k expenses, £10k wage
Outside IR35 net monthly income: £6,452 with expenses paid.
Inside IR35 net monthly income: £4,288 with expenses still be paid.
with expenses included
Gross income
outside £6452
inside £4288
after expenses
outside £5619
inside £3455
Note the very slight difference in take home (after expenses pay)...
this isn't net, it doesn't include higher rate tax on income/dividendsComment
-
Originally posted by Guesstimator View PostI was under the impression that the end client would not have to do anything other than declare to hmrc that they consider you inside ir35?Last edited by jamesbrown; 11 August 2015, 10:38.Comment
-
Three issues here :-
1. HMRC first of all went after aggressive avoidance. Now they are going after avoidance full stop.
2. HMRC tell the government of the day what to do.
3. This country is full of internet warriors who will whine and moan. Online.
Stop any one of those three and the natural order will assert itself.Comment
-
I'd have to agree with a poster above that the end game for HMG here is that everybody is an employee and the employer is acting as unpaid tax collector and sending regular chunks of cash to them.
Having royally messed up IR35 in 1990's, I suspect that this time around, a better job will be done.
We may also see the rise of yet more dodgy schemes that claim to reverse the effect of being regarded as an employee. In particular the schemes that say, "divert some of your salary to some form of third party (trust) and take a loan" or "use some of your earnings to buy share options that magically are worth pretty much the same (less our fees) when they mature". All 100% HMRC compliant, backed by QC opinion and usually offshore so that the fee recipients are safe from HMRC action.
The survey being run by "eek" is a CRUCIAL piece in resisting the proposition as it is EVIDENCE based. If you have yet to complete it, do it now.
What I don't see in this debate yet is reaction from the clients. These proposals will make them responsible for making decisions about employment/contractor status and for deducting and paying money to HMG. failure in these areas will have consequences.
I would have thought that all and any industry collectives, trade associations, etc would be piling in here about the potential increase in their costs and the HR consequences. Perhaps I'm not looking in the right places and perhaps they are engaged in a quiet and subtle lobbying effort, but I'd prefer to see more PR and active resistance.
I would generally agree with those here who see this as the end of choice in terms of how to sell your services for 90% or more of contractors.
Differences in numbers between your present arrangements and full permanent employment will disappear very rapidly.
Please, please DO NOT BE TEMPTED INTO THE SORT OF SCHEME ABOVE.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
-
Somehow I find it possible to imagine mandating PAYE by the client company. Just like IR35 itself: no you are not an employee with security, holidays, sick pay etc; but yes you pay tax like one. So: no you are not a client employee; but yes you pay tax like one.
The mechanism is easy: "You the client will operate PAYE for this contractor. By order."
Then what the contractor gets is the tax of an employee, without the benefits. Sound familiar?
TBH I don't believe that is what HMG/HMRC want: they simply want everybody inside PAYE; they regard the missing benefits as your problem/mistake.
I think it was Margaret Beckett who responded to the question
"Why should IR35-caught contractors pay tax like an employee when they don't get the benefits of an employee?"
with the reply:
"If you have the correct employment status then the correct benefits will follow".Last edited by expat; 11 August 2015, 10:57.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment