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eek
16th March 2017, 12:18
Deleted

WordIsBond
16th March 2017, 14:38
Are you sure you can't apply salary payments made at any time in the year to a contract at any other time during the year?

I've never been inside except for a very small contract which all went to pension contributions, so I've never looked into this extensively.

I'd assume if you paid salary after an inside contract you could apply it to that contract, so why couldn't you if it was before the contract?

LondonManc
16th March 2017, 14:40
I think we could do with an accountant confirming it - Michael, Alan, etc?

teapot418
16th March 2017, 14:46
Following a comment from http://forums.contractoruk.com/public-sector-ir35/120242-new-role-declared-inside.html#post2389176 I've just realised something.

Usually I pay myself a small salary every month but that means I'm using my income tax allowance up which would be a problem if you start an inside IR35 contract later in the year.

Hence its probably no longer sensible to pay yourself any monthly income via PAYE but to leave it until March the following year (so March 2018) and pay it as one lump sum once you know that you aren't caught that year...

Doesn't that affect your NI liability?

eek
16th March 2017, 15:04
Doesn't that affect your NI liability?

Don't believe so as Director's NI is treated differently....


Are you sure you can't apply salary payments made at any time in the year to a contract at any other time during the year?

I've never been inside except for a very small contract which all went to pension contributions, so I've never looked into this extensively.

I'd assume if you paid salary after an inside contract you could apply it to that contract, so why couldn't you if it was before the contract?

Remember in this new world, the NI and tax is paid on your behalf by the agent. I cannot see how you would be able to successfully claim that that wage slip in April is the same as the one the agent paid in December...

WordIsBond
16th March 2017, 15:46
Remember in this new world, the NI and tax is paid on your behalf by the agent. I cannot see how you would be able to successfully claim that that wage slip in April is the same as the one the agent paid in December...
You're right.

teapot418
16th March 2017, 15:48
Don't believe so as Director's NI is treated differently....

Just googled it, I never knew that!

RonBW
16th March 2017, 15:50
Remember in this new world, the NI and tax is paid on your behalf by the agent. I cannot see how you would be able to successfully claim that that wage slip in April is the same as the one the agent paid in December...

So your advice is only for those in public sector and inside? Would it still be worth paying a monthly salary if you are inside IR35 outside public sector?

eek
16th March 2017, 15:55
So your advice is only for those in public sector and inside? Would it still be worth paying a monthly salary if you are inside IR35 outside public sector?

For a contract outside the public sector all that matters is income paid as salary or pension is equal or greater to the contract that was inside.

The public sector changes change that as its withholding tax regime is very different and probably works against the contract rather than the year as a whole...

MPwannadecentincome
16th March 2017, 18:19
Just googled it, I never knew that! same here and accountant has never discussed it with me either, but I suppose it actually only matters if you are not paying regularly?

cojak
16th March 2017, 22:14
This needs a sticky

eek
17th March 2017, 08:55
same here and accountant has never discussed it with me either, but I suppose it actually only matters if you are not paying regularly?

Technically you have to do a monthly rti submission so the logic goes you may as well pay some money every month....

but that logic no longer holds.