Good time to bug your MP

[Sysman]

What? If you're spending a lot on travel or accommodation either don't take the contract or negotiate a higher rate.

The government doesn't need to subsidise us so we can choose to work on the other side of the country.

When it's working the other side of the country or sitting on the dole because government policy has stuffed the area you live in it's not much of a choice.

[Robinho]

So the choice is don't take a contract earning 400+ quid a day or go on the dole.

Is there no middle ground?

The reality is... someone more local will take the job, and the employment rate will stay the same. If you feel your locality is stuffed i suggest moving house.

[doodab]

In fact i don't see why dividends should command lower tax rates anyway, they should just classify dividend tax as part of your income.

They don't, and IR35 has absolutely nothing to do with that anyway.

[Robinho]

They don't, and IR35 has absolutely nothing to do with that anyway.

What do you mean?

It allows us to pay ourselves in dividends. I consider that one of the biggest advantages of being outside IR35.

Are you doing that thing where you are nitpicking at my posts because you don't like me again?

[doodab]

What do you mean?

It allows us to pay ourselves in dividends. I consider that one of the biggest advantages of being outside IR35.

I mean IR35 is to do with national insurance. There is nothing that says you can't pay yourself in dividends if you are inside IR35, all that happens is that you become due for NI on the "deemed payment", which means that it's treated effectively the same as earned income, as opposed to say dividends from BP shares which don't attract NI.

Are you doing that thing where you are nitpicking at my posts because you don't like me again?

No, I'm doing that thing where I'm disagreeing with you because I think you are wrong. It's nothing personal, I guess you probably feel singled out because you are wrong a lot.

[Robinho]

which means that it's treated effectively the same as earned income

That was what i was getting at...

In fact i don't see why dividends should command lower tax rates anyway, they should just classify dividend tax as part of your income.

The same should apply for BP shares.

I didn't know you could pay yourself divvies inside IR35, however, that's irrelevent to the fundamental argument, so yeah, you are nitpicking as usual.

[doodab]

That was what i was getting at...

I didn't know you could pay yourself divvies inside IR35, however, that's irrelevent to the fundamental argument, so yeah, you are nitpicking as usual.

What is the fundamental argument exactly? You said dividends commanded lower tax rates and I just pointed out that they don't, now you seem to be both agreeing with me and complaining that I'm nitpicking.

The same should apply for BP shares.

How do you mean? That dividend income should be subject to NI? Is this for all investors or just private individuals? What about other forms of income like rental and capital gains?

[mudskipper]

Are you doing that thing where you are nitpicking at my posts because you don't like me again?

This would imply there was a period of liking you between the first and second instance of nitpicking. Or am I nitpicking?

[Robinho]

What is the fundamental argument exactly? You said dividends commanded lower tax rates and I just pointed out that they don't, now you seem to be both agreeing with me and complaining that I'm nitpicking.

The fundamental point i am making is that your income is your income, and should be taxed in the same way.

Additionally, dividends do have lower rates than pure income tax before you consider NI.

[doodab]

The fundamental point i am making is that your income is your income, and should be taxed in the same way.

The same way as what? How about a self employed person? Or a partner in a law firm? I'd argue that it would be fairer if IT contractors and PSC users were subject to the same regimen as these people than the current situation where they become liable both for employees and employers NI, especially if it's a policy goal of the government to encourage a flexible workforce.

Additionally, dividends do have lower rates than pure income tax before you consider NI.

Not when you factor in that the money distributed as dividends is already subject to corporation tax whereas money distributed as salary isn't.