Private Sector and IR35 -Grrrrr Private Sector and IR35 -Grrrrr - Page 2
Page 2 of 6 FirstFirst 1234 ... LastLast
Posts 11 to 20 of 51
  1. #11

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    38,873

    Default

    Quote Originally Posted by Jenme View Post
    Thank you for this - felling like I'm slowly going mad. I'll read the link in detail.

    I was told that we wouldn't need to use the deemed payment calculator as we're paying all taxes each month via PAYE? Not sure how I can account for the 5% it gives though.
    Use another term for Inside IR35. Call it disguised employment. He's effictively employed. You can't split a wage.
    Last edited by northernladuk; 19th September 2017 at 17:05.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  2. #12

    Fingers like lightning

    gables's Avatar
    Join Date
    Jul 2006
    Posts
    704

    Default

    Quote Originally Posted by Jenme View Post
    Thank you for this - felling like I'm slowly going mad. I'll read the link in detail.

    I was told that we wouldn't need to use the deemed payment calculator as we're paying all taxes each month via PAYE? Not sure how I can account for the 5% it gives though.
    well, base the PAYE on just 95% of the monthly income. That'll leave enough at the end of the year to pay an accountant etc.

  3. #13

    Still gathering requirements...


    Join Date
    Aug 2017
    Posts
    24

    Default

    Quote Originally Posted by northernladuk View Post
    The person is being taxed as an employee (singular). If you split it you are gaining an unfair tax advantage using both your lower rates when her husband is doing a job like an employee.
    That's the crux of it, isn't it. We would be getting a tax advantage so he can't employ me. If he was paying an accountant, he would be able to offset the fee as an expense instead - you're right, I can't be an employee (which is fortunately how I have run the payroll this month).

    I presume then he won't be able to utilise the employment tax allowance then, hence the 14% disadvantage advised on the earlier link.
    Last edited by Jenme; 19th September 2017 at 17:22.

  4. #14

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    38,873

    Default

    Quote Originally Posted by Jenme View Post
    That's the crux of it, isn't it. We would be getting a tax advantage so he can't employ me. If he was paying an accountant, he would be able to offset the fee as an expense instead - you're right, I can't be an employee (which is fortunately how I have run the payroll this month).

    I presume then he won't be able to utilise the employment tax allowance then, hence the 14% disadvantage advised on the earlier link.
    But he can employ you if he wants to.

    Get yourself an accountant.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  5. #15

    Super poster


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    4,021

    Default

    There's a lot of muddled language being used in this thread.

    If you're both shareholders you can split any profits the company makes by paying dividends. But if all of the money the company is earning is coming from your husband in an IR35 contract, then there isn't actually any profits for you to split as it is all paid to him as salary (subject to the 5% expenses allowance).

    None of this affects whether or not you can be paid a salary by the company for whatever role you're doing, but if the company has no additional income coming in besides the IR35 contract, then it can't actually *afford* to pay you. The money just isn't there.

    The best advice I can give is for your husband to start looking for an outside IR35 contract. This will allow him to pay himself more flexibly, build up a warchest, share the profits with you when you have accumulated some, and the company will have sufficient cashflow to pay you a reasonable salary as well.

  6. #16

    Super poster

    Lance's Avatar
    Join Date
    Sep 2013
    Location
    home
    Posts
    3,617

    Default

    Quote Originally Posted by Jenme View Post
    It would be seen as tax avoidance in this case
    It isn't helped when HMRC say you can't do tax avoidance. You can. You cannot do tax evasion because that's illegal.

    Tax avoidance is legal and legitimate.

    Get an accountant. Read the thread here on accountant recommendations.
    See You Next Tuesday

  7. #17

    Old Greg is my bitch's bitch

    northernladyuk's Avatar
    Join Date
    Nov 2011
    Location
    Working the streets of your imagination
    Posts
    9,419

    Default

    OP what does your OH do? Few people are really inside IR35.
    Where there's muck there's brass.

  8. #18

    Still gathering requirements...


    Join Date
    Aug 2017
    Posts
    24

    Default

    Quote Originally Posted by northernladyuk View Post
    OP what does your OH do? Few people are really inside IR35.
    He's an IT consultant in the private sector - he had to sign a form to say he was inside IR35.

  9. #19

    Old Greg is my bitch's bitch

    northernladyuk's Avatar
    Join Date
    Nov 2011
    Location
    Working the streets of your imagination
    Posts
    9,419

    Default

    Quote Originally Posted by Jenme View Post
    He's an IT consultant in the private sector - he had to sign a form to say he was inside IR35.
    What kind of IT? Project based?

    Admittedly having to sign that form is problematic... Is this commonplace nowadays?
    Where there's muck there's brass.

  10. #20

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    38,873

    Default

    Is he through an agent? Have they offered him PAYE or an umbrella option?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •