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Old 22nd August 2006, 10:32   #96
malvolio
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Join Date: Jul 2005
Location: Walking in the garden, dreaming of Olivia...
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Quote:
Originally Posted by brobi
Ok but your actual expenses might be train fares, petrol, IT equipment etc. So for the most part your expenses is money you spent for a service. But with mine I pay tax on 20,000 a year with no claim on the petrol (130 per month 12x130=1,560.

Calculation Result (monthly)
Income Before Tax - 5,000
Expenses (not claimed) - 160
Tax (9% account management charge) - 730
Income After - 4,110

So in summary no recipts to keep, no accounts to manage (self employed), no accountancy fees, no IR35 and overall no hassels as this firm deals with the agency directly.
I think you need to talk to an accountant. If you're netting £48k it's quite likely you should be paying higher rate...

But then again, if we didn't have people boasting about their abilities to fiddle the system- or even just ignoring it completely - we wouldn't have had S134c and IR35 in the first place.
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