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Switching to PSC from Umbrella

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    #11
    Self declared inside via own ltdco is still preferable to umbrella surely?

    I believe that the 5% deduction would still be valid and pension can be paid through salary sacrifice to reduce the tax burden.

    Comment


      #12
      Originally posted by Cirrus View Post
      Contractors are people who perform work intended to be covered by IR35. But don't comply. That's how it's been for nearly two decades.

      SNIPPED
      Contractors could be as you state depending on the specific circumstances, but they can also be the following:

      • Sought and engaged, due to a lack of specific skills and expertise within the client current employees.


      The client may also have difficulty hiring a permanent employee at a FTE wage rate comfortable to their accounting department.
      (So it is more politically-feasible to hire a 'temporary' contractor, even if they are renewed as the conditions haven't changed at the end of the original contract)

      Now;
      Is it the contractors' fault, that the client has still failed to source a FTE replacement, with the requisite skills and/or experience?
      -No

      Is it the contractors' fault, that the client may not want to source a FTE replacement, with the requisite skills and/or experience - due to legislation (redundancy etc.)?
      -No

      Further, should they then be punished by Hector tax-wise, for the client inability/inaction on the matter?
      -No


      I would agree that there are clear flags, as to IR35 status, which many contractors do not trigger - e.g. MoO, SDC, etc. - there is an argument, that those who do trigger them, should be taxed the same as FTE - but I don't recognise your 0.1% figure...


      Even HMRC themselves only claim 90%** are not complying - so ask yourself;
      • Why you are posting figures more harsh than HMRC?
      • Why are you adding another 9.9% to HMRC firgures?
      • Is it trolling?
      • Is it to try and add extra emphasis to a point?
      • Is it simply, that you are plucking numbers from the air?

      **Source: https://parliamentlive.tv/event/inde...YAIBcDY_YlA5e0

      You are of course most welcome to answer those questions differently and your post is an interesting insight into your personal thought processes, but it differs from other perspectives, including my own.

      HTH
      Originally posted by Old Greg
      I admit I'm just a lazy, lying cretinous hypocrite and must be going deaf
      ♕Keep calm & carry on♕

      Comment


        #13
        It's Cirrus. I wouldn't take any notice.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #14
          Originally posted by fidot View Post
          Self declared inside via own ltdco is still preferable to umbrella surely?

          I believe that the 5% deduction would still be valid and pension can be paid through salary sacrifice to reduce the tax burden.
          No


          Sent from my iPhone using Contractor UK Forum

          Comment


            #15
            Originally posted by GhostofTarbera View Post
            No


            Sent from my iPhone using Contractor UK Forum
            Certainly true if the ltdco doesn't receive the full invoice amount, but would you care to explain why it is still no in the case where the ltdco receives the full invoice amount?

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