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Company Car Tax - between companies

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    #21
    Originally posted by LisaContractorUmbrella View Post
    So, let me get this straight - you want to become a contractor but you will be doing the same job you are doing down, for the same employer, under the same conditions and with the same company car. Is your employer paying you more to work for him on this basis?

    If your earnings warrant it you will still be paying 40% tax regardless of whether you are employee, contractor or Mr Benn
    That is exactly right. I just didn't know if I could avoid the company car tax as effectively my company would be doing work for them, not myself. However since the original post I understand that I have a slightly more complicated matter of IR35 to look into first.

    Thanks for your reply tho.

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      #22
      Originally posted by dmh View Post
      That is exactly right. I just didn't know if I could avoid the company car tax as effectively my company would be doing work for them, not myself. However since the original post I understand that I have a slightly more complicated matter of IR35 to look into first.

      Thanks for your reply tho.
      Nothing complicated about it. You are inside. Most clear cut example I have seen tbh.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

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        #23
        Originally posted by dmh View Post
        That is exactly right. I just didn't know if I could avoid the company car tax as effectively my company would be doing work for them, not myself. However since the original post I understand that I have a slightly more complicated matter of IR35 to look into first.

        Thanks for your reply tho.
        As NLUK says you will most definitely, without question be inside IR35 which means that any money you earn through your company would be subject to PAYE tax - you would be liable for income tax, employee's NI and employer's NI. You would also lose all the benefits of being a permanent employee so unless you can negotiate a rate considerably above your current salary you would be a lot worse off.
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