£400K tax bill £400K tax bill
Page 1 of 2 12 LastLast
Posts 1 to 10 of 16

Thread: £400K tax bill

  1. #1

    Richer than sasguru

    DimPrawn is a fount of knowledge

    DimPrawn's Avatar
    Join Date
    Jul 2005
    Location
    Brexit Britain
    Posts
    34,569

    Default £400K tax bill

    BBC presenter made to pay £420,000 in HMRC clampdown | Daily Mail Online

    Christa Ackroyd, 60, has to pay back £419,151 after HMRC clamped down on a tax loophole used by freelancers.

    Self-employed people work through their own limited companies, which allows them to pay a lower rate of tax. An individual earning £50,000-a-year through a limited company can pay just £2,000, compared to £13,000 of someone in employment.

    And the comments...

    This happens all the time! So many contractors especially in IT are employed for years on end at the same company in the same job,earning double the rate of employed colleagues and paying less tax. HMRC are useless about enforcing ir35 and people get away with it and companies love it because they can hire and fire contractors at will.
    Utter rubbish! double rate? More like quadruple...
    I was miserable and depressed, but CUK turned it all around. Now I'm depressed and miserable.

  2. #2

    Super poster

    quackhandle is NOT a disguised employee

    quackhandle's Avatar
    Join Date
    Mar 2010
    Location
    Bag End, The Shire, Middle Earth
    Posts
    2,360

    Default

    I saw this, apparently dear old Auntie Beeb "encouraged" her to setup a limited company, so some culpability there.

    However reading the comments from Ms Ackroyd, she believed she was an independent freelancer, but she hadn't a scooby about IR35 and SDC, etc.

    qh
    He had a negative bluety on a quackhandle and was quadraspazzed on a lifeglug.

  3. #3

    My post count is Majestic

    d000hg - scorchio!

    d000hg's Avatar
    Join Date
    Dec 2007
    Location
    My house
    Posts
    32,094

    Default

    If your 'employer' tells you it is how they advise you work, it's the norm in your industry, and your accountant advises it's legit...

    Ultimately the responsibility is your own but "you don't know what you don't know" to ask sometimes.
    Quote Originally Posted by MaryPoppins View Post
    I'd still not breastfeed a nazi
    Quote Originally Posted by vetran View Post
    Urine is quite nourishing

  4. #4

    Super poster

    NorthWestPerm2Contr 's job has never been outsourced

    NorthWestPerm2Contr's Avatar
    Join Date
    Sep 2009
    Posts
    4,219

    Default

    Quote Originally Posted by d000hg View Post
    If your 'employer' tells you it is how they advise you work, it's the norm in your industry, and your accountant advises it's legit...

    Ultimately the responsibility is your own but "you don't know what you don't know" to ask sometimes.
    Didn't Qdos insurance sort her out?
    "To Learn who rules over you, simply find out who you are not allowed to criticise"- Voltaire

  5. #5

    Respect my authoritah!

    NotAllThere is always on top

    NotAllThere's Avatar
    Join Date
    Aug 2007
    Location
    Far away from HMRC
    Posts
    20,954

    Default

    Quote Originally Posted by DimPrawn View Post
    ...

    Utter rubbish! double rate? More like quadruple...
    4x? INKSPE.
    Hmm. I'm beginning to suspect that you need to find all the packing the computer came in...

  6. #6

    Contractor Among Contractors

    sal 's job has never been outsourced


    Join Date
    Jun 2014
    Posts
    1,744

    Default

    Quote Originally Posted by d000hg View Post
    If your 'employer' tells you it is how they advise you work, it's the norm in your industry, and your accountant advises it's legit...

    Ultimately the responsibility is your own but "you don't know what you don't know" to ask sometimes.
    Nothing wrong with the accountant advise - it IS LEGIT to work for someone using a ltd. even if under DC, not paying the appropriate amount of personal taxes is a different matter.

  7. #7

    Super poster

    pjclarke 's job has never been outsourced


    Join Date
    Jul 2008
    Posts
    2,832

    Default

    An individual earning £50,000-a-year through a limited company can pay just £2,000
    Well, that's heartening news. How does one go about this?
    My subconscious is annoying. It's got a mind of its own.

  8. #8

    Richer than sasguru

    DimPrawn is a fount of knowledge

    DimPrawn's Avatar
    Join Date
    Jul 2005
    Location
    Brexit Britain
    Posts
    34,569

    Default

    An individual earning £50,000-a-year through a limited company can pay just £2,000
    Quote Originally Posted by pjclarke View Post
    Well, that's heartening news. How does one go about this?
    Ask your accountant. You could ask mine, but he's still in prison.
    I was miserable and depressed, but CUK turned it all around. Now I'm depressed and miserable.

  9. #9

    Faqqed Off

    TheFaQQer is a fount of knowledge

    TheFaQQer's Avatar
    Join Date
    Oct 2006
    Posts
    36,488

    Default

    Quote Originally Posted by pjclarke View Post
    Well, that's heartening news. How does one go about this?
    Salary £8k
    Pension £32k
    Gross Profit £10k
    Corporation tax £2k
    Net profit £2k

    Pay our £5k in dividends and you leave £3k in the company
    Best Forum Advisor 2014
    Work in the public sector? You can read my FAQ here
    Click here to get 15% off your first year's IPSE membership

  10. #10

    Super poster

    pjclarke 's job has never been outsourced


    Join Date
    Jul 2008
    Posts
    2,832

    Default

    Quote Originally Posted by TheFaQQer View Post
    Salary £8k
    Pension £32k
    Gross Profit £10k
    Corporation tax £2k
    Net profit £2k

    Pay our £5k in dividends and you leave £3k in the company
    £1,100 a month to live on? Have you tasted Lidl baked beans?
    My subconscious is annoying. It's got a mind of its own.

Posting Permissions

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