SJD v NW advice = confusion

[Alan @ BroomeAffinity]

so some tax and NI is payable to keep HMRC happy

That seems somewhat naive imo.

[rightfluff]

That seems somewhat naive imo.

you can see why I'm confused?
It's all very well to say it's up to the client but if Nixon Williams say it's fine to do that then why not to do it. I'm not a lawyer or an accountant so I should take their advice.

[malvolio]

you can see why I'm confused?
It's all very well to say it's up to the client but if Nixon Williams say it's fine to do that then why not to do it. I'm not a lawyer or an accountant so I should take their advice.

Nah, it's dead simple. All any accountant will give you is advice. It's up to you to decide what to do with it. If you ask someone else, they'll think "he didn't like that advice" and so advise you differently. Repeat ad nauseam...
The only way to get a definitive answer is to study the rules carefully and make your own informed decision, which rather means taking the same level of training as the average accountant.

Anyway, the cautious approach is to assume future changes will be based on the NMW benchmark, which is why it is often suggested by the accountants. However no such legislation is in place, so you can work the minimum salary route without any real immediate risk. But...

There is an argument that says Hector will look closer at people who appear not to be paying taxes at all which also argues for a low but not minimal salary, although I remain unconvinced (I don't think Hector's smart enough to notice such cases). Equally, as with the EBT thing, you can see how a change can be announced for some future point but enacted immediately via some form of forestalling process. Which means it may well be a better bet to take a slight hit on the tax front in exchange for not risking being hit by any such measures. Which is what SJD are saying.

Which may not be of much help of course...

[Wanderer]

The only way to get a definitive answer is to study the rules carefully and make your own informed decision, which rather means taking the same level of training as the average accountant.

How come everyone here says "Ask your accountant" when someone asks a question then?

[SueEllen]

How come everyone here says "Ask your accountant" when someone asks a question then?

Because the person clearly hasn't done their research.

Loads of the questions have been already answered and explained multiple times, and a variety of answers can be found by searching this site.

Also by simply googling you can find contractor guides from sources such as PCG, tax guides from HMRC and guides on business sites some which have been set up by the government.

Then if you ask your accountant a simple and well thought out question you can get their interpretation of the tax rules and an indication why they interpret them that way.

[rightfluff]

Because the person clearly hasn't done their research.

Loads of the questions have been already answered and explained multiple times, and a variety of answers can be found by searching this site.

Also by simply googling you can find contractor guides from sources such as PCG, tax guides from HMRC and guides on business sites some which have been set up by the government.

Then if you ask your accountant a simple and well thought out question you can get their interpretation of the tax rules and an indication why they interpret them that way.

Wrong. I have done my research. I asked both accountants. Read through the bullet in boards etc. but wanted to know more. That's what these boards are for. You read the initial post when you opened the thread. Just don't get involved if it annoys you.

[malvolio]

Wrong. I have done my research. I asked both accountants. Read through the bullet in boards etc. but wanted to know more. That's what these boards are for. You read the initial post when you opened the thread. Just don't get involved if it annoys you.

Hey, if you don't like the answers, don't ask questions.

HTH

[rightfluff]

Hey, if you don't like the answers, don't ask questions.

HTH

You don't know the answers until you ask the question.
I was happy with all the answers until this started. Gone from a sensible discussion to this. Typical.

[SueEllen]

Wrong. I have done my research. I asked both accountants. Read through the bullet in boards etc. but wanted to know more. That's what these boards are for. You read the initial post when you opened the thread. Just don't get involved if it annoys you.

Odd I thought I was answering Wanderer's post.

Anyway the thread actually points out that thanks to HMRC there isn't actually any clear answers and accountants are just interpreting the rules using their own professional judgement. You just have to use your judgement to whether you consider the accountant you are using is right or not.

[rightfluff]

Odd I thought I was answering Wanderer's post.

Anyway the thread actually points out that thanks to HMRC there isn't actually any clear answers and accountants are just interpreting the rules using their own professional judgement. You just have to use your judgement to whether you consider the accountant you are using is right or not.

It's been very informative and I have made my decision. Thanks to everyone for posting and helping me out.