• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Office of Tax Complication

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #11
    Originally posted by SueEllen View Post
    Any government that merges NIC and income tax knows they would shoot themselves in the foot as it would reveal the real amount of tax people pay.
    That would still only be the tip of the tax iceberg.

    Just think of how many different taxes and duties are paid for instance between gross pay by an employer and spending some of it on a pint down the pub (alcohol duty and VAT), especially if you drove to the pub (fuel duty and vat, road tax).

    One way or another they claw back most of what you earn. If they really wanted to simplify things they could require the employer to pay them first and they give you what's left. Pocket money for being a nice net contributing citizen.
    Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

    Comment


      #12
      Originally posted by ChimpMaster View Post
      https://assets.publishing.service.go...per_May_18.pdf

      Page 19 onwards.

      Yet more tinkering to destroy the entrepreneurial spirit in not-so-Great Britain.

      "A more radical option would be to end the differential tax rates for dividend income. If all taxable income was taxed at the same rates, it would not matter how the personal allowance was used. Making this change would have the effect of increasing the amount of tax due from those who receive amounts of dividend income above the allowance. It would also impact on the taxation of profit extracted as a salary or as a dividend, from family owned companies"

      I mean like which uneducated jobsworths come up with this kind of stupid unworkable idea.
      This is how contracting via a Ltd works in Ireland except you generally say the equivalent of sole trader NIC. It's a good system other than the low thresholds for higher rate tax (which is a general issue, not contracting specific).

      Comment


        #13
        Originally posted by Old Greg View Post
        This is how contracting via a Ltd works in Ireland except you generally say the equivalent of sole trader NIC. It's a good system other than the low thresholds for higher rate tax (which is a general issue, not contracting specific).
        Stop giving British government departments ideas...
        "You’re just a bad memory who doesn’t know when to go away" JR

        Comment


          #14
          Originally posted by SueEllen View Post
          Stop giving British government departments ideas...
          Why not? Their own ideas are pretty useless. They need all the help they can get.
          Public Service Posting by the BBC - Bloggs Bulls**t Corp.
          Officially CUK certified - Thick as f**k.

          Comment


            #15
            Originally posted by SueEllen View Post
            Stop giving British government departments ideas...
            It's a perfectly reasonable idea. People can still use a Ltd company, and can still retain funds in the company, but the most tax efficient way of extracting company money is taxed in the same way as a sole trader. A much better outcome than being tipped into inside IR35 with full employers and employees NIC.

            Comment


              #16
              Originally posted by Old Greg View Post
              It's a perfectly reasonable idea. People can still use a Ltd company, and can still retain funds in the company, but the most tax efficient way of extracting company money is taxed in the same way as a sole trader. A much better outcome than being tipped into inside IR35 with full employers and employees NIC.
              Exactly. Turns the clock back to when a contractor was a sole trader. It makes a great deal of sense to go back to that instead of having a sham incorporation forced into you.
              Public Service Posting by the BBC - Bloggs Bulls**t Corp.
              Officially CUK certified - Thick as f**k.

              Comment

              Working...
              X