IR35 tax code

[Herts47]

So basically you have been working Inside IR35 for past 2 payslips (months?).

Like unravelling rat's nest trying to get the pimp and client to sort out this mess. Life is too short.

Personally I'd walk and go and find another gig outside (IR35) not "outside", like a farmer or dry stone waller.

qh

I've had 2 payslips and get paid weekly. The second payslip had 2 weeks to it (one timesheet was authorised late). Yes I'm seriously considering walking away. I won't get any tax refund until my self assessment (if at all because trying to convince HMRC they are wrong is like getting blood out of a stone), and the agency have said they honestly don't know the answers so am waiting for Area and Branch manager to call me but they've not called to date - probably because they don't have a clue either.

[Lance]

I've had 2 payslips and get paid weekly. The second payslip had 2 weeks to it (one timesheet was authorised late). Yes I'm seriously considering walking away. I won't get any tax refund until my self assessment (if at all because trying to convince HMRC they are wrong is like getting blood out of a stone), and the agency have said they honestly don't know the answers so am waiting for Area and Branch manager to call me but they've not called to date - probably because they don't have a clue either.

Who's doing the PAYG deduction? Your story suggests the agency but if so then they should be able.to answer.
If it's the client then you want to talk to their HR department.

[mudskipper]

See the FAQs here

http://forums.contractoruk.com/publi...bout-ir35.html

[tarbera]

And remember your

All Expenses
Accountant
Insurance
Etc
Etc

Now come out of your net earnings

[Qdos Contractor]

See here, particularly number 14 onwards.

[Herts47]

Who's doing the PAYG deduction? Your story suggests the agency but if so then they should be able.to answer.
If it's the client then you want to talk to their HR department.

The agency are doing the PAYE deduction and unfortunately they don't know the answers! My contact has referred to her Area and Branch manager but, surprise, surprise, I haven't heard from them yet and I'm due another payslip next week.

[Herts47]

And remember your

All Expenses
Accountant
Insurance
Etc
Etc

Now come out of your net earnings

Yep I know. And also IR35 doesn't allow any expenses to be claimed either. How the hell this legislation got through I just don't know as to say it's discriminatory is being polite. A contractor is significantly worse off than an employee earning less now. No employee rights and, in my case, paying almost 60% to HMRC each week for the pleasure of working my butt off!

[Herts47]

See the FAQs here

http://forums.contractoruk.com/publi...bout-ir35.html

Thanks. I read those before I posted as I couldn't find specific tax information on them but they are useful - certainly the options as walking away from the contract is looking good right now!

[Herts47]

See here, particularly number 14 onwards.

Thank you for this. I'd seen the update but not this page and it's very useful. It doesn't mention anything about HMRC deeming an IR35 employment to be a secondary employment from the limited company though - and why the hell they've given me a DO 0 code and what to do about it. A reply to my post has suggested I need to contact HMRC to reallocate my taxable allowance to this employment (yes, I'm using the word employment because that's what it is and I'm going to look into AWR's as well but that's another story). Trouble is, you start contacting HMRC (when you can finally get through to them), and you highlight them to yourself and all sorts of investigations. I'll no doubt get it sorted through self assessment but it's not right you have to wait until the end of the tax year to sort out overpayment of tax - which is HMRC's fault not mine. No doubt they will try and adjust my tax code for next year rather than give me a full refund.

I do hope someone has the clout and knowledge to fight the contractor's cause on this and, wishful thinking, both HMRC and the Govt sort this mess out and give the contractor equal rights for an employee or fair taxation and expenses of their limited company.

[Lance]

Yep I know. And also IR35 doesn't allow any expenses to be claimed either. How the hell this legislation got through I just don't know as to say it's discriminatory is being polite. A contractor is significantly worse off than an employee earning less now. No employee rights and, in my case, paying almost 60% to HMRC each week for the pleasure of working my butt off!

Try explaining to a permie on £40k why your £100k is not fair.
You’re right that it’s not good legislation but you do (should) get much more gross salary.