Originally posted by RasputinDude
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New proposal from IPSE - Smoke and mirrors?
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Originally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishing -
Originally posted by d000hg View PostHMRC don't need a special FLC entity to punish contractors. They could do it through the existing PSC stuff.
Trying to change the rules for Ltd's would have monumentally wide ranging implications, too wide for that to be practical and far too wide for any large scale changes, a new entity type throws those limits away.
It takes a terribly naive mind to imagine that the rules around a new entity type won't be heavily pointed towards tax raising rather than tax mitigating.
The "optional" element is very easily done away with, just look at the actual reality of the purely "optional" Opt Out of the regulations.Comment
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Originally posted by d000hg View PostHMRC don't need a special FLC entity to punish contractors. They could do it through the existing PSC stuff.merely at clientco for the entertainmentComment
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The Ltd setup isn't designed around contractors and allows them to take the mick, tax-wise. An entity which means contractors pay tax equivalent to what a permie would do might mean we pay more tax, but it's hard to oppose other than from reasons of pure self-interest. It'd probably mean I pay more tax, but I wouldn't mind too much if it removed the whole "you contractors earn 2X as much and pay no tax" argument.
I got into contracting to earn more and have more flexibility, not to get out of paying tax. That was just a happy coincidenceOriginally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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Originally posted by d000hg View PostThe Ltd setup isn't designed around contractors and allows them to take the mick, tax-wise. An entity which means contractors pay tax equivalent to what a permie would do might mean we pay more tax, but it's hard to oppose other than from reasons of pure self-interest. It'd probably mean I pay more tax, but I wouldn't mind too much if it removed the whole "you contractors earn 2X as much and pay no tax" argument.
I got into contracting to earn more and have more flexibility, not to get out of paying tax. That was just a happy coincidence
Now if you could create an FLC and be treated as self employed that would be fine (and just about acceptable). However IR35 shows that the won't be the case as HMRC want to treat the contracting skilled self employed as employees even through neither the end client or our end clients want that.
As for taking the mickey paying tax. Sorry I just disagree with that becoming a contractor is a risk and may not pay off. As such (and as with all other business ventures) we should be able to reward those who bear some of the risk (i.e. spouses...) with some of the reward that the risk provided if it works...merely at clientco for the entertainmentComment
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There is no 'taking the mick', as you sacrifice your employment 'rights' for it, as it is conducted on a b2b basis. As for the usual arguments clueless permies trot out, they are irrelevant; the client knows far more than they do about why they engage services via a ltd company and are willing to pay for it for a reason. The biggest joke involved with IR35 is that you are treated as employed for tax purposes but gain no employment rights and also must fork out the NI on your 'employer's' behalf. It is just a tax grab, that was originally intended for a very small subset of contractors.Last edited by Zero Liability; 27 November 2014, 16:19.Comment
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Originally posted by d000hg View PostThe Ltd setup isn't designed around contractors and allows them to take the mick, tax-wise. An entity which means contractors pay tax equivalent to what a permie would do might mean we pay more tax, but it's hard to oppose other than from reasons of pure self-interest. It'd probably mean I pay more tax, but I wouldn't mind too much if it removed the whole "you contractors earn 2X as much and pay no tax" argument.
I got into contracting to earn more and have more flexibility, not to get out of paying tax. That was just a happy coincidenceComment
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Originally posted by d000hg View PostThe Ltd setup isn't designed around contractors and allows them to take the mick, tax-wise. An entity which means contractors pay tax equivalent to what a permie would do might mean we pay more tax, but it's hard to oppose other than from reasons of pure self-interest. It'd probably mean I pay more tax, but I wouldn't mind too much if it removed the whole "you contractors earn 2X as much and pay no tax" argument.
I got into contracting to earn more and have more flexibility, not to get out of paying tax. That was just a happy coincidence
You'd get out of the argument, and would have no IR35 worries any more.
So why don't you?Comment
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Originally posted by tractor View PostAre you saying you would be happy to pay more tax if people stopped calling you names?Comment
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I'm assuming that a FLC would be taxed the same as self-employed if it did go ahead, so no Employer's NI. Just class 4 NIC's.
Would FLC mean we could operate as the same entity i.e. Self Employed with the protection of a LTD and just put all our Income/Expenditure on our self assessment and not need accountants to manage the company accounts. Could you carry forward retained profit?Last edited by BlueSharp; 27 November 2014, 16:28.Make Mercia Great Again!Comment
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