Contractor taxes too high

[keveen]

After returning to contracting after some years I find the current PAYE contractor scheme quite unjust. Many people on this forum seems to think that any new legal "scam" introduced by the government to screw as much money out of you as possible is OK. I don't think so. It's as if some people have forgotten that it is YOUR money, the fruits of your hard work and skills and no government has any "right" to any of it - they just force it out of us by threats and punishments.

Some people seem shocked that anyone would think of claiming an allowance for lodgings for example at a higher price than they actually paid. The government makes such an act illegal but in fact all you are doing is bending rules in your favour since it is actually your money you are trying to protect from a predatory IR. I know that that does not have any force in law but it is nevertheless a legitmate tactic. Every company tried its hardest to avoid paying tax and the biggest ones suceed to the sum of billions.

There is nothing wrong in NOT wanting to pay tax especially when it is so high.

Apparently the IR thinks that I have the same costs living away from home as I do when at home - especially with regard to eating out. I find I'm spending £6 a day on coffees alone which I would never do at home where I spend very little in that respect and don't eat out or grab sandwhiches to anything like the same extent as I am doing now. Why? Because I need and deserve compensatory spending and in my opinion I really should have a tax free allowance of about £30 a day for food. The phrase I read was something like "everyone eats" so sorry sucker no special allowances for you!

As for PAYE apparently I pay the normal PAYE tax plus Employers NI. Well why should I pay more NI if I am not going to be allowed a measly unbelievable £5 no receipt "subsistence". Apparently they think £15 is a lot for a meal - obviously they don't eat out much.

As a contractor I am expected to behave like a professional and I'm not about to eat sandwhiches and my pay rate is simply what I deserve and should get as a normal employee anyway (but don't).

It seems that LTD company is the way? And why don't people use a local accountant instead of online ones?

Yours,

shocked at the tax rate and lack of paper free allowances!

[TykeMerc]

Taxes are a fact of life, if you find somewhere that you can work, earn decent rates and enjoy a lifestyle substantially similar to the one I have in the UK please let me know.

Claiming expenses higher than what you've actually paid out is not a legitimate tactic, in fact literally speaking it's illigitimate i.e. illegal and tax fraud, are you really that naive?

All employers pay employers NI as part of their payroll for every employee, no-one likes it but it's part of the tax regime in this country, the alternative is to move to a more favourable one.

There are IR approved blanket allowance expense rates for long days, early days, overnight stays to cover out of pocket costs, again if you don't like them you can always head to another tax regime.

You say that as a contractor you get the pay rate you deserve that you don't get as a perm employee, but has it ever occurred to you that perm employees cost more to employ than they actually get paid? Employers NI, holidays, sick leave, pension rights, redundancy rights, liability insurances etc etc all cost money that the perm employee doesn't see. A big chunk of what we get as contractors is to cover those sorts of costs.

I loathe paying taxes and I feel we get awful value for money, but I'm not upset enough to up sticks and head to a different tax regime just yet thanks.

[contractor79]

get a ltd company, pay yourself £12k salary and the rest in dividends and pension, claim all legitimate expenses that you can

I personally wouldn't go through a local accountant, I know someone who does and it appears the local accountant is treating him like a greengrocer of some sort which may not be optimal or correct

[pmeswani]

get a ltd company, pay yourself £12k salary and the rest in dividends and pension, claim all legitimate expenses that you can

I personally wouldn't go through a local accountant, I know someone who does and it appears the local accountant is treating him like a greengrocer of some sort which may not be optimal or correct

Most of the accountants near me that are PCG approved is not commutable for me. (No car or driving license). I wouldn't use an Accountant (online or on the street) that are not known to other contractors or recruitment agencies.

[blacjac]

There is nothing wrong in NOT wanting to pay tax

Sorry but I think there is.
Why do you think you are above contributing to society? Do you not want Police? The Fire Service? the Ambulance Service?
And that's just for starters.


Grow up you simpleton.

[NotAllThere]

Sorry but I think there is.
Why do you think you are above contributing to society? Do you not want Police? The Fire Service? the Ambulance Service?
And that's just for starters.


Grow up you simpleton.

There's nothing wrong in not wanting to pay taxes. The wrongdoing is in not actually paying them. Or do you never feel obliged to do something you don't want to do?

"And Gordon spake to the assembled multitudes, saying: 'You have heard it said, "Thou shall not evade taxes", but I say unto you, if any person regardless of gender or sexual orientation, saith in his/her/its heart "Gosh, this tax bill seems rather high", then he/she/it hath commited a gross crime against society, and shall be hectored without mercy, until every last morsel of cash has been extracted from him; yeah, even with penalties. For from him who hath anything, all will be taken away for the greater good of the New Labour majority... err society".

[AZZIK]

Most of the accountants near me that are PCG approved is not commutable for me. (No car or driving license). I wouldn't use an Accountant (online or on the street) that are not known to other contractors or recruitment agencies.

Nixon Williams. You don't need to see any accountant in person; everything can be done over the phone or via email.

[pmeswani]

Nixon Williams. You don't need to see any accountant in person; everything can be done over the phone or via email.

Even though this is true (as that is how I do business with the Accounting company I use at the moment), if I were to use a more traditional accountant, I would prefer to have a face to face approach. I'm sure there's nothing wrong with Nixon Williams.

[blacjac]

There's nothing wrong in not wanting to pay taxes. The wrongdoing is in not actually paying them. Or do you never feel obliged to do something you don't want to do?

yes there is.

I want to pay taxes because I want to be able to phone the fire brigade if my house catches fire.

[NotAllThere]

yes there is.

I want to pay taxes because I want to be able to phone the fire brigade if my house catches fire.

You might also feel that you want to pay taxes so that you can have an NHS dentist. But due to government incompetence and mismanagement, you can't. And if/when the same inadequacy means that the fire brigade can't address your burning issue for 48 hours, will you still want to pay tax?

I kind of assume that when you say you want to pay tax, that you want to pay the tax that is legally required of you? Or do you want to pay 90% tax to satisfy some deep craving?

You seem to be incapable of distinguishing between desire and duty. So long as you pay your legally due taxes, who gives a toss whether you want to or not? You seem to think that unless someone actually holds a deep-felt need, to pay tax, that they're somehow lacking in morality. You're not Gordon Brown are you?

Personally, I'd be very happy with a tax system where I pay less tax on my earning, perhaps by dint of greater expenses allowances, and thereby rely more on the rest of society's contributions. But I'd have to be an MP for that, and I really can't be bothered.