100 NHS and civil servants fall foul of IR35

[meanttobeworking]

Senior NHS officials sacked following investigation into off-payroll earnings - Telegraph

[northernladuk]

Most of this I believe is around the controlling persons aspect and the rules around public sector contracting. These are some quite senior people. I think we had some discussions about controlling persons. The rules around public sector contracts have also been around awhile and has caused some concern.

http://forums.contractoruk.com/busin...-director.html

http://forums.contractoruk.com/accou...et-2012-a.html

http://forums.contractoruk.com/busin...-hmrc-tax.html

http://forums.contractoruk.com/busin...ntracting.html

And so on. Loads of threads about it on here.

[centurian]

Talk about mis-informed

Running earnings through a personal service company means the firm pays corporation tax – as low as 20 per cent – rather than personal income tax at up to 45 per cent, plus national insurance.

Factually correct I guess - just...

All expenses can be deducted from earnings before profits are calculated, and many individuals employ their partner in a “secretarial” role. The individual can also minimise their tax bill further by leaving “profits” in the company, paying themselves in small dividends.

"Further" - so even less than 20 percent

It's the opposite - Corp tax + divs comes to roughly the same amount as Income Tax

[ASB]

It's the opposite - Corp tax + divs comes to roughly the same amount as Income Tax

But, if you keep divis low and out of the 40% band then there is no further tax to pay, leave the money to accumulate and drip it out over the years as a lower rate taxpayer does - in those circumstances - provide a useful saving over time.

And of course there is no NI on the divi route.

So, they do minimise their bill further by leaving profits behind; but yes, it wasn't well written.

[BolshieBastard]

Senior NHS officials sacked following investigation into off-payroll earnings - Telegraph

KUATB

http://forums.contractoruk.com/busin...ml#post2063905

[meanttobeworking]

KUATB

That'll teach me for not hanging on your every word... When will I learn?

[Zero Liability]

But, if you keep divis low and out of the 40% band then there is no further tax to pay, leave the money to accumulate and drip it out over the years as a lower rate taxpayer does - in those circumstances - provide a useful saving over time.

And of course there is no NI on the divi route.

So, they do minimise their bill further by leaving profits behind; but yes, it wasn't well written.

Indeed, and how many people would object to tax relief on a 'savings' account? These sort of ill informed articles exist solely to stoke envy, which is particularly funny with regard to contractors, seeing as anyone with the skills and right attitude can become one... provided they're willing kiss their precious employment 'rights' and other entitlements goodbye.

[northernladuk]

Wonder if NWP2C is going to have a rant about the headline?