Originally posted by Steven@Parasol
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IR35 - how many investigations per year?
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Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k. -
With regard to the tax that contractors pay, I paid far and away more tax in the last year through VAT and CT on my Ltd Co than I even earned in my last staff job. I suppose I'm still an IR35 tax dodging scumbag contractor, but if I went back to a staff role the chancellor would lose £000's every year from me alone. I don't expect politicians to start to understand that, they have other agendas.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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Originally posted by Steven@Parasol View Postyes, same situation for us.
Is this because everyone knows the rules and what we are dealing with now? And if so, does the panel think this is an argument for keeping the legislation in its current form?P.S. What Spreadsheet? Revolutionising the contracting market again.Comment
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Originally posted by Pacciae View Postits not a valid question for a self styled ir 35 expert to make.If these experts dont understand the way we work then they should go back to been counting instead of telling us that working through an agent means we are not really in business. as this is the appropriate response'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by simonsjdaccountancy View PostAs Parasol are an umbrella I'm not surprised you are quiet on the IR35 front!Comment
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Originally posted by malvolio View Post.
contractors do generate wealth and assocaited tax payments via both CT and VAT)
I just did a little calc thing at that IR35 calculator website and here is what i found.
For a contractor that generates 100k of revenue a year
1. The equivalent salary is 111532
2. The tax on 11532 is £42536 (employee NI + PAYE)
3. The total tax paid for the contractor CT+VAT is 48004
Conclusion: We pay more tax than a permie.
The reality is even more stark as the permie rate for a 500 odd a day contract is a lot less than 111k.
So HMRC should be encouraging us to contract and forget about IR35.Comment
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Originally posted by Fred Bloggs View PostWith regard to the tax that contractors pay, I paid far and away more tax in the last year through VAT and CT on my Ltd Co than I even earned in my last staff job. I suppose I'm still an IR35 tax dodging scumbag contractor, but if I went back to a staff role the chancellor would lose £000's every year from me alone. I don't expect politicians to start to understand that, they have other agendas.Comment
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Originally posted by prozak View PostYou know this is an excellent point. And one not considered by many.
I just did a little calc thing at that IR35 calculator website and here is what i found.
For a contractor that generates 100k of revenue a year
1. The equivalent salary is 111532
2. The tax on 11532 is £42536 (employee NI + PAYE)
3. The total tax paid for the contractor CT+VAT is 48004
Conclusion: We pay more tax than a permie.
The reality is even more stark as the permie rate for a 500 odd a day contract is a lot less than 111k.
So HMRC should be encouraging us to contract and forget about IR35.Comment
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Originally posted by craig1 View PostAlthough I agree with the principle of your point, it's not 100% right. VAT is a transparent tax for the vast majority of B2B relationships, if you didn't pay that VAT then your client would from their upstream business transactions, be it B2B ones of their own or B2C ones that generate the primary VAT liability, all you're doing is reducing their VAT liability and increasing yours, a nil sum game for you and HMRC. The only people who really pay VAT are the punters at the far end of the chain of transactions who can't reclaim their VAT expenditure.
Any other companies that don't charge VAT?
Do they get the VAT back in another way?Comment
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Originally posted by prozak View PostYou know this is an excellent point. And one not considered by many.
I just did a little calc thing at that IR35 calculator website and here is what i found.
For a contractor that generates 100k of revenue a year
1. The equivalent salary is 111532
2. The tax on 11532 is £42536 (employee NI + PAYE)
3. The total tax paid for the contractor CT+VAT is 48004
Conclusion: We pay more tax than a permie.
How did you calculate the CT + VAT figure? My calculations comes to 38946.
The reality is even more stark as the permie rate for a 500 odd a day contract is a lot less than 111k.
So HMRC should be encouraging us to contract and forget about IR35.
Being a ltd company means you pay considerable tax if you plan your income. No one on this board, pays themselves full amount in salary or even salary/dividend.
Coming back to the point, I prefer the IR35 to stay as it is. I dont mind paying couple of hundreds every year for insurance, and some efforts in making sure, my working practices are compliant.Comment
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