National Minimum Wage or £97 pw?

[Chugnut]

Come on folks. Why does everyone get so bent out of shape justifying how they remunerate themselves? Take advice from multiple sources (HMRC, QDOS, SJD, PCG, etc.), and make your decisions accordingly. Pay little attention to scaremongering and contrived spin. What sits well with you may not with the next person. I'm married, with a young son, and a wife who works part time. My salary level is dictated by a huge number of factors, and strangely enough, they'll be different than yours.

There's a lot of grey areas facing us at the moment - S660, IR35, and MSC's for starters. As we've seen in Arctic, IR35 cases, and dubious press releases slamming the use of limited companies, etc., an awful lot comes down to interpretation by one party over another. If you have shown that you have attempted to make yourself aware of the areas that involve you, and taken guidance from experts in a field where you are unsure, you've covered all the bases you can reasonably be expected to, haven't you?

I have chosen a structure I feel is fair and defensible. Do the same, back it up with 3rd parties where you think you need to, have a Coke and a smile, and sleep well.

Chugnut out.

[Lewis]

Ok, I have got a reply from QDOS.

They say their underwriters consider contractors who pay themselves very small salaries (below the National Minimum Wage) to be at much higher risk of enquiry than someone who pays themselves a salary of at least the National
Minimum Wage.

Obviously this is their opinion and others can disagree. I mention it only so people can make an informed decision for themselves.

[ab9132]

I would go back to lurking, if I were you.

Try telling the iR that the business is not being used for tax avoidance. Why do you think Ir35 was introduced in the first place - just for the fun of it?

I operate outside of IR35, so would have no problem telling the IR exactly that.

If you genuinley operate outside of IR35, what are you worried about?

I suspect you are the one avoiding tax by not being outside of IR35 and are looking for some glimer of hope to reduce the chance of an investigation.

[Burdock]

I suspect you are the one avoiding tax by not being outside of IR35 and are looking for some glimer of hope to reduce the chance of an investigation.

You don't know Denny very well mate!

[ab9132]

You don't know Denny very well mate!

Fortunatley your right, but I have read this site for a long time without posting, so I am reasonably aware of Denny.

This nonsense of a moral obligation to pay unecessary amounts of tax/ni finally prompted me to post something.

[ASB]

Exactly. But there is one other point that needs to come into the eqation - today's moral stance, is tomorrow's legal stance.

A good point. Look at how governments can manipulate based on apparant climate change. Equally it can use the parliament act to force thorough legislation to allow the buggering of young boys. A strange moral stance in my mind.

If people behaved morally in the first place, instead of being so greedy, then we wouldn't be in this mess.

Perhaps. I rather imagine we'd just be in a different one. If you wish to equate greed with acting within a societal framework then so be it. I do think, however, that if the government had legislated in a more sensible manner, we probably wouldn't be in this mess either.

Your idea of moral and mine are different. I expect everybody else is too. In my view it is perfectly OK to act within societys legal framework - even when it is things I do not personally approve of.

[Denny]

This nonsense of a moral obligation to pay unecessary amounts of tax/ni finally prompted me to post something.

[removed]

[ab9132]

Who said I was worried? I've never been a bum on seater - my field doesn't lend itself to 2 year, 2 a penny contracts without a break. I have to do a lot of legwork to get the contact and leads I need from new clients, and I always follow through with a solid outside ir35 contract that is miles away from inclusion as you could possibly get. I'm not even in IT.

Can't someone have a viewpoint on here that doesn't allude to greed, ignorance and bigotted right wing thinking that drags everyone into a cesspit of higher taxes eventually?

You've only been a limited company for a year with one contract if I understand your post in another thread.

I have no problem with you having a different viewpoint. I do have a problem with you advising people new to running a company to pay more tax than they are legally obliged to and telling them to ignore the advice of experts in the taxation/accounting field.

Maybe I'd take you a little more seriously if you actually had some experience.

[ab9132]

Why don't you go EBT - you'd save yourself heaps of tax and no bother of running a limited either.

I'm flattered that it took one of my posts for you to be a brave boy and post on here. Are you as brave in the business world, I wonder?

I'm quite happy as I am thank you. I have two employees to think of not just myself.

Please come back and advise me how to run my business when/if you ever do secure a second contract or any direct work.

I'm glad your flattered, hopefully my comments will inspire you to get yourself some work.

[Bluebird]

Fight, Fight, Fight...