BN66/S58 update

[DonkeyRhubarb]

But I guess a lot of people are really disguised employees.

Or, as AtW might classify them, "cheats"!

[AtW]

Here's an example of a law.
Dangerous Dogs Act 1991 - Wikipedia, the free encyclopedia

This made it illegal to own Pit Bull Terriers, Japanese Tosas, Dogo Argentinos and Fila Brasileiros.

Statistics show that German Shepherds account for a large % of dog attacks. Perhaps that is a loophole in the law that should be closed.

Would it be ok to change the law retrospectively to make it illegal to have owned German Shepherds since 1991?

If some dangerous dog gets added to the list then it should be also put down - that's element of "retrospection".

[Mich the Tester]

this is how I want to progress: to become a boutique consultancy.

Is that a company providing advice on posh girls' bottoms?

[eek]

No-one is exploiting any flaws (holes) in IR35 then?

By your definition, many of the people on this site would be classified as cheats.

You are digging a hole and rapidly filling it up behind you here. Atw has never worked as a contractor he was permie at his previous place (I contracted at a sister company at the same time) and then set up his own company. He's never had to face IR35 as he's never needed to.

Likewise I now provide tools and services that make most of my income. IR35 wouldn't enter the equation there.

So far the only arguments I seem to have seen here are:-

1) Woe is us
2) you all avoid tax (sadly some of us pay more in a year than your total bill including surcharges).
3) and the classic people don't mind others avoiding tax. (He's a hint they really really don't like others doing so).

[AtW]

No-one is exploiting any flaws (holes) in IR35 then?

I don't.

Do you?

By your definition, many of the people on this site would be classified as cheats.

I don't know that. There are plenty of contractors that work in one place 6 months and move on, I'd say IR35 was never meant to apply to them in the first place - it's hardly permanent employment with all the benefits it brings.

[eek]

If all people had to pay 3.5% income tax then sure, no problems.

But people in same position of those in BN66 paid 40%+NICs.

+1. If it looks too good to be true, it probably is and will come back and bite you later.

Oh look it did.

[BolshieBastard]

I have recently come back to contracting after a long hiatus and IR35 is indeed very poor legislation.
But precisely because I don't want to be audited years hence and found to be owing, I'm not being aggressive with tax e.g. I'm not paying myself minimum wage but a realistic one on which I pay tax and NI.
In any case I'm trying hard to be a proper business as this is how I want to progress: to become a boutique consultancy. So I have my own office, control of work including right of subsitition, will shortly have more than one client at the same time and will be spending money on advertising. Hopefully I will be able to recruit a graduate soon.

But I guess a lot of people are really disguised employees.

So, are you paying yourself what you deem to be a 'realistic' wage or a realistic amount of tax? I take it, because you claim you are paying yourself a realistic wage, you are still avoiding the full tax take under IR35 otherwise you'd have said you were fully compliant with IR35. But you're not.

See where your 'moral' argument has got you? No, you probably dont.

Oh, and I've news for you, paying yourself a 'reasonable wage' doesnt mean hmrc wont investigate you. Even if you show them you've paid a 'realistic wage,' if its less than you should have paid under IR35, you're still evading (note not avoiding) your tax obligations.

Enjoy!

[AtW]

Or, as AtW might classify them, "cheats"!

But what they cheat?

They pay corp tax and income tax from dividends. You could argue they cheat NICs, however they would pay them in their own Ltd and they don't get permanent employee benefits such as holiday pay etc.

You really need to speak for yourself rather than shift it to others - nobody can achieve 3.5% income tax rate in proper Ltd if they earn equivalent of 40% income tax rate salary.

[stek]

BN66/S58 update

Wasn't income tax brought in as a temporary measure to fund the Napoleonic Wars - to be repealed after victory?

Probably another urban myth...

[BolshieBastard]

You are digging a hole and rapidly filling it up behind you here. Atw has never worked as a contractor he was permie at his previous place (I contracted at a sister company at the same time) and then set up his own company. He's never had to face IR35 as he's never needed to.

Likewise I now provide tools and services that make most of my income. IR35 wouldn't enter the equation there.

So far the only arguments I seem to have seen here are:-

1) Woe is us
2) you all avoid tax (sadly some of us pay more in a year than your total bill including surcharges).
3) and the classic people don't mind others avoiding tax. (He's a hint they really really don't like others doing so).

Does make you wonder why someone who has never worked as a contractor 'lives' on a contractor website, setting himself up to be lord high and mighty, doesnt it?

I mean its like a motor mechanic signing up to a vetenary website and telling the vets how to stick their arm up a cow's arse.

Clearly, you and others have your mind set. You dont want to recognise that a government did nothing for 8 years then introduced legislation that retrospectively changed the law.

The efficacy of the 3.5% tax paid is really immaterial.