Are you working inside / outside IR35, and are you doing the 95% salary or Salary/Dividend thing ?
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36Inside IR35, 95% Salary (not a lot I can do)8.33%3Inside IR35, but still paying Divis (I enjoy risk)0.00%0Outside IR35, 95% Salary (not worth the risk)0.00%0Outside IR35, paying Divis (and I'm well happy)91.67%33 -
Inside IR35 and paying divis is illegal, actually, and carries a 6 year term for tax evasion, so I really really hope nobody says yes to that one...Originally posted by FarmerPalmer View PostBlog? What blog...?
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So fine that with only a tiny amount of effort you should be able to avoid it. What I'm saying is that if you accept that you are inside IR35 (and a lot of people do, for no more obvious reason than they can't be bothered to check it out properly) then you are legally obliged to pay full PAYE and NICs on 95% of gross: not doing so is illegal. If however you are able to decide which side of the line you're on, your option 2 doesn't apply anyway.Originally posted by FarmerPalmer View Post
And Option 3 is just plain silly...Blog? What blog...?Comment
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I'm not so sure it is. As long as you make the PAYE payment based on the deemed salary. It would make paying dividends a bit pointless but not out and out illegal.Originally posted by malvolio View Post
This is because although you pay the tax on deemed salary it may not be the actual salary. Indeed their is an argument that you should not pay the associated salary. If you leave the associated salary unpaid then you would have a good argument to get the PAYE element back if later it turns out you were not caught, which given the figures on the Home Page of the PCG there is a high chance you were not caught.Comment
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