IR35 post April 2011

[Fred Bloggs]

If the unlikely happens and contractors end up with such a huge tax burden, I'd have to seriously consider my options. Going out of my way and working at the other end of the country would be a non starter as it wouldn't be worth the hassle. I'd have to seriously think about a staff job where I get home every night and try to settle down to being a wage slave again. Unpalatable option, but it depends on whether contracting in the future continues to offer the way of working and the reward that presently makes it worth doing.

[fckvwls]

If you can get a £100k+ salary then you probably already would be. There are far more contractors than jobs paying that much!

Had one last year that I left for a £600 per day contract that I am still in.

Been offered perm job for 120k with shares per the thread I started a couple days ago.

[d000hg]

Posting it don't make it true. You really think DP is a millionaire?

What do you do to get such high salaries? You can get £600/day as a developer but I would assume you've got to go into management to get a 6-figure salary?

[fckvwls]

Posting it don't make it true. You really think DP is a millionaire?

What do you do to get such high salaries? You can get £600/day as a developer but I would assume you've got to go into management to get a 6-figure salary?

Programme Management.

Am currently managing a Pan-European roll-out.

[Alan Jones]

not trying to be a smartass (this time...)

but from what I just read on this site, the report isn't due until Nov 2011 and then given further time for review/legislation, I doubt very much we will see anything until 2013 earliest....

According to the accountant tasked with IR35 simplification we can expect changes that will be effective from 6 April 2011.See IR35 review won't conclude until 2011 :: Contractor UK

[norrahe]

Had one last year that I left for a £600 per day contract that I am still in.

Been offered perm job for 120k with shares per the thread I started a couple days ago.

Decided on that yet?

[Alan Jones]

If there's employers and employees NI put on top of the 21% corporation tax you pay on dividends, that's a tax take of around 46% on all your income, would you stay contracting?

Hopefully the NI will be a new "class" at say 10% which provides a saving versus the "deemed salary" calculation and better than being a "permie" or "umbrella fella" particularly if you can use your spouses personal allowance and/or standard rate of tax band.

[fckvwls]

Decided on that yet?

Nope. It seems like one of those decisions that I won't know if I made correctly until a few years down the line.

[BlasterBates]

That's what I would expect, that's how it is in Germany they just expect the employees contribution. I can't see them charging the full amount, which I think on balance is a fair compromise. Lets face it, it covers health, pensions, unemployment, and invalidity benefit. I think another way of dealing with this would be to withdraw cover for anyone paying the minimum amount, but earning a huge amount, I think if the government did that everyone would be volunteering to pay it, private health insurance is not cheap. Anyone paying the minimum is being subsidised by everyone else, because they're supposed to be poor. In my view the NI was just badly designed, I think it works much better in other countries where they break it up into health and pensions, and you might pay one or the other or both.

[Fred Bloggs]

Hopefully the NI will be a new "class" at say 10% which provides a saving versus the "deemed salary" calculation and better than being a "permie" or "umbrella fella" particularly if you can use your spouses personal allowance and/or standard rate of tax band.

I'd be appaled if "the office of tax simplification" came up with yet another income tax band on top of what we've already got. Because that's effectively what you're proposing!