IR35 is bad

[elsergiovolador]

This IR35 is such a mess.

It is absolutely fine that umbrella pays basic salary + commission

It is outrageous that company director pays basic salary + dividend

Nobody says that the tax lands in the same bucket anyway

Only difference there is no NI paid on dividend.

Just make NI payable on dividends and scrap this nonsense.

[Paralytic]

This IR35 is such a mess.

This thread is nothing to do with IR35.

[vwdan]

This IR35 is such a mess.

It is absolutely fine that umbrella pays basic salary + commission

It is outrageous that company director pays basic salary + dividend

Nobody says that the tax lands in the same bucket anyway

Only difference there is no NI paid on dividend.

Just make NI payable on dividends and scrap this nonsense.

Comission, bonuses, whatever you want to call them are taxed IDENTICALLY to any other salary - it's just bog stock PAYE stuff.
Dividends are taxed completely differently, have their own tax free allowance, don't incur NI.

[elsergiovolador]

This thread is nothing to do with IR35.

These vehicles to avoid employment law wouldn't exist if there was no IR35.

[northernladuk]

These vehicles to avoid employment law wouldn't exist if there was no IR35.

Maybe so but this thread isn't about that.

[oilboil]

These vehicles to avoid employment law wouldn't exist if there was no IR35.

They would, because they existed before the Arctic Case (which is pretty much the start point of IR35 give or take)

There were always schemes that promised to pay you more than you'd get as a limited taking min salary and full dividend through loans/gifts etc.

Wherever there is tax to pay a smart accountant will make buckets helping people evade/avoid it. IR35 just made it easier to convince people to engage in the weird and wonderful convoluted processes