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£400K tax bill

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    £400K tax bill

    BBC presenter made to pay £420,000 in HMRC clampdown | Daily Mail Online

    Christa Ackroyd, 60, has to pay back £419,151 after HMRC clamped down on a tax loophole used by freelancers.

    Self-employed people work through their own limited companies, which allows them to pay a lower rate of tax. An individual earning £50,000-a-year through a limited company can pay just £2,000, compared to £13,000 of someone in employment.

    And the comments...

    This happens all the time! So many contractors especially in IT are employed for years on end at the same company in the same job,earning double the rate of employed colleagues and paying less tax. HMRC are useless about enforcing ir35 and people get away with it and companies love it because they can hire and fire contractors at will.
    Utter rubbish! double rate? More like quadruple...

    #2
    I saw this, apparently dear old Auntie Beeb "encouraged" her to setup a limited company, so some culpability there.

    However reading the comments from Ms Ackroyd, she believed she was an independent freelancer, but she hadn't a scooby about IR35 and SDC, etc.

    qh
    He had a negative bluety on a quackhandle and was quadraspazzed on a lifeglug.

    I look forward to your all knowing and likely sarcastic and unhelpful reply.

    Comment


      #3
      If your 'employer' tells you it is how they advise you work, it's the norm in your industry, and your accountant advises it's legit...

      Ultimately the responsibility is your own but "you don't know what you don't know" to ask sometimes.
      Originally posted by MaryPoppins
      I'd still not breastfeed a nazi
      Originally posted by vetran
      Urine is quite nourishing

      Comment


        #4
        Originally posted by d000hg View Post
        If your 'employer' tells you it is how they advise you work, it's the norm in your industry, and your accountant advises it's legit...

        Ultimately the responsibility is your own but "you don't know what you don't know" to ask sometimes.
        Didn't Qdos insurance sort her out?
        "To Learn who rules over you, simply find out who you are not allowed to criticise"- Voltaire

        Comment


          #5
          Originally posted by DimPrawn View Post
          ...

          Utter rubbish! double rate? More like quadruple...
          4x? INKSPE.
          Down with racism. Long live miscegenation!

          Comment


            #6
            Originally posted by d000hg View Post
            If your 'employer' tells you it is how they advise you work, it's the norm in your industry, and your accountant advises it's legit...

            Ultimately the responsibility is your own but "you don't know what you don't know" to ask sometimes.
            Nothing wrong with the accountant advise - it IS LEGIT to work for someone using a ltd. even if under DC, not paying the appropriate amount of personal taxes is a different matter.

            Comment


              #7
              An individual earning £50,000-a-year through a limited company can pay just £2,000
              Well, that's heartening news. How does one go about this?
              My subconscious is annoying. It's got a mind of its own.

              Comment


                #8
                An individual earning £50,000-a-year through a limited company can pay just £2,000
                Originally posted by pjclarke View Post
                Well, that's heartening news. How does one go about this?
                Ask your accountant. You could ask mine, but he's still in prison.

                Comment


                  #9
                  Originally posted by pjclarke View Post
                  Well, that's heartening news. How does one go about this?
                  Salary £8k
                  Pension £32k
                  Gross Profit £10k
                  Corporation tax £2k
                  Net profit £2k

                  Pay our £5k in dividends and you leave £3k in the company
                  Best Forum Advisor 2014
                  Work in the public sector? You can read my FAQ here
                  Click here to get 15% off your first year's IPSE membership

                  Comment


                    #10
                    Originally posted by TheFaQQer View Post
                    Salary £8k
                    Pension £32k
                    Gross Profit £10k
                    Corporation tax £2k
                    Net profit £2k

                    Pay our £5k in dividends and you leave £3k in the company
                    £1,100 a month to live on? Have you tasted Lidl baked beans?
                    My subconscious is annoying. It's got a mind of its own.

                    Comment

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