Aren't the majority of IT contractors inside IR35?

[MrC]

The government keep trying to find ways to make contractors pay NICs in particular, and failing.

Yes and we all know that nowadays NIC is just further tax by another name.
So it is, as i indicated, just about the government maximising its tax takings.

I suppose i was pondering the ethical/moral dilema of how much tax should a contractor pay. I presume the governments underlying stance is that every company should pay a certain proportion and every individual who does work for that company should pay a certain proportion. Hence IR35 derives from the unfairness (tax shortfall) of 2 people doing the same role, 1 a PAYE permie the other a ltd company contractor.

[TheFaQQer]

Yes and we all know that nowadays NIC is just further tax by another name.
So it is, as i indicated, just about the government maximising its tax takings.

I suppose i was pondering the ethical/moral dilema of how much tax should a contractor pay. I presume the governments underlying stance is that every company should pay a certain proportion and every individual who does work for that company should pay a certain proportion. Hence IR35 derives from the unfairness (tax shortfall) of 2 people doing the same role, 1 a PAYE permie the other a ltd company contractor.

Soon enough, NICs will disappear. All income, regardless of source, will be taxed at the same rate.

Then, IR35 will be put to bed.

[doodab]

Soon enough, NICs will disappear. All income, regardless of source, will be taxed at 100%

Then, IR35 will be put to bed.

FTFY

[moorfield]

I suppose i was pondering the ethical/moral dilema of how much tax should a contractor pay.

If the government are going to p155 it all away like they have done there is no ethical/moral dilemma as far as I am concerned.

If I pay less tax, I save more, I spend more, ergo more VAT for Hector.

[singhr]

If the government are going to p155 it all away like they have done there is no ethical/moral dilemma as far as I am concerned.

If I pay less tax, I save more, I spend more, ergo more VAT for Hector.

A bit like HMGOV printing more cash and calling it quantitative easing, you are stimulating the economy in your own way - fair play!

[TheBigYinJames]

If I pay less tax, I save more, I spend more, ergo more VAT for Hector.

If I mug more grannies, it provides work and jobs for hospital staff, it also keeps the police busy and in jobs. The blood transfusions they receive stops stale blood stagnating in hospital bloodbanks. Also, if the grannies die, I save the NHS and pensions service a lot of money, as well as stimulating the funeral services and probate industries. Also it makes more room on those handy seats near the door on the bus.

Nuff said!

[aalvarez]

If the government are going to p155 it all away like they have done there is no ethical/moral dilemma as far as I am concerned.

If I pay less tax, I save more, I spend more, ergo more VAT for Hector.

You are paying VAT? Then you are not using your limited the right way!

[escapeUK]

Soon enough, NICs will disappear. All income, regardless of source, will be taxed at the same rate.

Then, IR35 will be put to bed.

Unlikely in my opinion as doing so would make every day sheep realise just how much money they were having stolen from them.

Splitting it between tax, NI and Employer NI make it seem less noticeable. If we had all these and VAT and council tax all added together it would no doubt be greater than 50%. Bring on the riots.

NI is a good idea in principle. However they way it is applied such that people like us who have significant savings are unable to claim for a lot of benefits makes it a joke. What insurance refuses to pay out based on the wealth of the claimaint?

Given this I have no moral delimma about my accountants structuring things such that I pay zero NI.

[Gonzo]

Soon enough, NICs will disappear. All income, regardless of source, will be taxed at the same rate.

Unlikely in my opinion as doing so would make every day sheep realise just how much money they were having stolen from them.

Splitting it between tax, NI and Employer NI make it seem less noticeable. If we had all these and VAT and council tax all added together it would no doubt be greater than 50%. Bring on the riots.

I've always thought that NI was quite a neat trick.

Employers' NI is even sneakier. Take the tax before people see that they have been taxed.

It is only the people working through umbrella companies that get to see the extent that employees are really taxed in the UK. If everyone understood that do you think that they would stand for it?

Meanwhile, people who have paid NI all their lives think that they have paid for their pension entitlement while the truth is that they have been paying for the pensions of the people that have retired ahead of them. A giant ponzi scheme to use a word of the moment. Sooner or later that model is going to break.

[escapeUK]

Meanwhile, people who have paid NI all their lives think that they have paid for their pension entitlement while the truth is that they have been paying for the pensions of the people that have retired ahead of them. A giant ponzi scheme to use a word of the moment. Sooner or later that model is going to break.

It wouldnt be so bad if it was going towards someones pension who has contributed into the ponzi scheme. What gets my goat is all the money that goes to the never worked chavs, teenage mums and the got a limp so cant work brigade.

It was a great idea socialism, having half your money taken from you and having a crap(er) life so that someone who doesnt want to work can have a nice life.