BN66 - Time to fight back (Chapter 3)

[expat]

I don't know but I would be curious to find out. I will drop them an email outlining the case and see what they have to say.

The trouble with the PCG is that they see us as damaging the cause of genuine contractors. The funny thing is though that I've yet to meet one of these so-called genuine contractors. Everyone I've ever come across who has Incorporated has only done it for one reason ie. to pay less tax/nic. Same goes for income shifting.

As ASB pointed out in this post, if you organise your Ltd in the right way the net income is not much different to a scheme. Incorporation in the majority of cases is just a sham to avoid tax, and the Government knows this.
http://forums.contractoruk.com/689577-post242.html

Must protest at this lie, and am surprised to hear it coming from a contractor.

I incorporated because clients, and in particular agencies, would not deal with me if I didn't. I didn't do it to pay less tax/nic, and I don't use it to pay less tax/nic.

[normalbloke]

Must protest at this lie, and am surprised to hear it coming from a contractor.

I incorporated because clients, and in particular agencies, would not deal with me if I didn't. I didn't do it to pay less tax/nic, and I don't use it to pay less tax/nic.

Why didn't you go PAYE with a brolly then? Less hassle than setting up a company if you were ambivalent about tax/nic.

I tend to agree with DR. Most of the contractors I have worked with, use incorporation for one reason only.

[TheBarCapBoyz]

reminded me of our rants down the pub last week!


I wish I could say the same, but I can't actually remember much about the night.

I have found though that the best way to deal with this HMRC BN66 attack is to go down the pub with a group of like-minded individuals, drink much ale, and gob off about how unfair the world is, and how won't it be great when we hand Mr B (cue camp wave + "hello" ) his arse on a plate.

[Chugnut]

Why didn't you go PAYE with a brolly then? Less hassle than setting up a company if you were ambivalent about tax/nic.

I tend to agree with DR. Most of the contractors I have worked with, use incorporation for one reason only.

A brolly gives you no option to work outside IR35, all contracts suffer full PAYE irrespective of working conditions. Plus you have to pay their fees for simple payroll, and they're another party in the payment chain.

[Biggles]

Delurking

Hi, I've been lurking for a while and decided to join in. Has anyone heard from MTM recently? I've just been handed a tax demand for 02/03 with 30 days to pay and am deparately trying to get in touch to see what the current state of the legal challenge is or cut my losses and just cough up.

Trouble is, if I do that, then I'm also going to have to pay my 03/04, 04/05 and 05/06 liabilities too. Plus, having seen my investments halve over the last few months, I think we'll be going to Bob Cratchets for Christmas dinner.

Cheers.

[DonkeyRhubarb]

Must protest at this lie, and am surprised to hear it coming from a contractor.

I incorporated because clients, and in particular agencies, would not deal with me if I didn't. I didn't do it to pay less tax/nic, and I don't use it to pay less tax/nic.

I can only speak from personal experience. Without exception, all the contractors I've worked with incorporated for tax reasons. There is nothing wrong with that but none of them did it because they had to for "business reasons".

You don't need to go to the hassle of setting up a Ltd to deal with agencies. You can just join an umbrella and get paid through PAYE. In fact, this is what I did when I first started contracting, until other contractors pointed out that you could net more going Ltd.

Now, to be fair, all the freelancers I worked with were only ever engaged on 3-12 month contracts with one client at a time but I bet this covers a significant proportion of the contractor community.

[DonkeyRhubarb]

A brolly gives you no option to work outside IR35, all contracts suffer full PAYE irrespective of working conditions.

Yes, but expat was claiming "I didn't do it to pay less tax/nic, and I don't use it to pay less tax/nic.", so I presume he/she must be operating inside IR35.

I don't know why people are so coy about this. It is every individual's right to organise their affairs (within the law) to minimise their tax liability.

[BrilloPad]

Yes, but expat was claiming "I didn't do it to pay less tax/nic, and I don't use it to pay less tax/nic.", so I presume he/she must be operating inside IR35.

I don't know why people are so coy about this. It is every individual's right to organise their affairs (within the law) to minimise their tax liability.

And if the laws were not so incredibly complex there would not be so many loopholes.

[expat]

Why didn't you go PAYE with a brolly then? Less hassle than setting up a company if you were ambivalent about tax/nic.

Mainly because I didn't see the need to hand over money and control to yet another company that I didn't really need.
Also, I found them inflexible for someone who often works outside the UK.

[Emigre]

SA Statements

Just received an amended statement from HMRC showing tax due of zero. Oh happy day. Lots of payment suspended comments. Just waiting to have those comments changed to "charges incorrectly levied"