Which one of you is this? Times report on private sector IR35

[NotAllThere]

... a 41-year-old IT contractor, says he takes home up to £80,000 per year of his £100,000 annual freelance revenue by working through a personal service company, which minimises his tax bill (David Byers writes).

Under the changes announced by the chancellor, he will have to pay far more tax on his earnings from April 2020 if he is contracting for a large or medium-sized firm. The changes bring the private sector into line with the public sector.

The contractor fears that the measures will cost him between 20 and 25 per cent a year of his take-home pay and that HMRC will ask him to repay a significant sum of underpaid tax. He says he fears “some financial difficulties”, although the Treasury stressed that the reforms were not retrospective.

He says the extra money he takes home reflects the lengthy period he is out of work each year. “I think these changes are short-sighted,” he said.

80K takehome on 100K fees? He's using one of those avoidance schemes, isn't he!

[northernladuk]

Indeed. This announcement could be the least of his worries.

He's not going to garner much sympathy for his 'financial hardships' when he's taking 80k a year home really.

[NotAllThere]

Of course, it could be poor journalism. One of our own was misquoted in the article.

[mudskipper]

FTOAD, I have been misquoted in this article.

The question was why I work via a ltdCo rather than self-employed.

I said that agencies would not engage with you as self-employed as they could become liable for unpaid tax. I also made the point about limited liability being essential as I did not want to be personally liable if I made a mistake.

I am very disappointed with how this has been interpreted.

[Paddy]

FTOAD, I have been misquoted in this article.

The question was why I work via a ltdCo rather than self-employed.

I said that agencies would not engage with you as self-employed as they could become liable for unpaid tax. I also made the point about limited liability being essential as I did not want to be personally liable if I made a mistake.

I am very disappointed with how this has been interpreted.

Never ever talk to a journalist; they are the scum of the earth.

A former colleague had his life turned upside down due to misreporting

[woohoo]

Never ever talk to a journalist; they are the scum of the earth.

A former colleague had his life turned upside down due to misreporting

Worked in newspapers for quite a while, some journalists are actually good guys if a little self important. Some are just your basic scum.

[NotAllThere]

Worked in newspapers for quite a while, some journalists are actually good guys if a little self important. Some are just your basic scum.

Better or worse than agents?

[Zigenare]

Better or worse than moderators?

Gratis.

[Cid]

he will have to pay far more tax on his earnings from April 2020 if he is contracting for a large or medium-sized firm

What is going to constitute a large or medium sized business ?

[woohoo]

Better or worse than agents?

that's a low bar, but yep better.