Staying in the same public sector contract after April 2017

[Old Greg]

All started from this legend.

https://www.linkedin.com/in/bobshawadiwadi

Bob Shawadiwadi

Dear, dear Bob.

Re: Limited company director do I need to pay tax? : Indefinite Leave to Remain - Page 2 • Immigrationboards.com

[kolata]

On another note: does anyone know (incl. HMRC) how exactly will this work?

I.e. say I am happy to be considered employee and the client is happy to pay me my day rate net. So they will pay extra tax + NI + ENI.

1. How will they know how much tax to take?
2. Where does the net pay go - to my Co's account or to my private account? Surely I don't want to pay corp tax on the net pay.

[LondonManc]

On another note: does anyone know (incl. HMRC) how exactly will this work?

I.e. say I am happy to be considered employee and the client is happy to pay me my day rate net. So they will pay extra tax + NI + ENI.

1. How will they know how much tax to take?
2. Where does the net pay go - to my Co's account or to my private account? Surely I don't want to pay corp tax on the net pay.

HMRC won't care. They've got their coin and will leave you to clean up after them.

[Old Greg]

On another note: does anyone know (incl. HMRC) how exactly will this work?

I.e. say I am happy to be considered employee and the client is happy to pay me my day rate net. So they will pay extra tax + NI + ENI.

1. How will they know how much tax to take?
2. Where does the net pay go - to my Co's account or to my private account? Surely I don't want to pay corp tax on the net pay.

You only pay CT on profit, whereas salary is an operating cost, so reduces your profit.

[kolata]

HMRC won't care. They've got their coin and will leave you to clean up after them.

Is that a fact?
Can it turn out that you might get more money than now if the client agrees to pay the same day rate net? This probably wont happen much but it is possible if the client is pressed for time/resources/expertise. And of course will make you very very expensive for them.

[kolata]

You only pay CT on profit, whereas salary is an operating cost, so reduces your profit.

What profit?
If you are deemed employee in PS all your day rate is salary so 100% of turnover is salary.

[Old Greg]

What profit?
If you are deemed employee in PS all your day rate is salary so 100% of turnover is salary.

So there in no CT, back to your previous post.

[LondonManc]

Is that a fact?
Can it turn out that you might get more money than now if the client agrees to pay the same day rate net? This probably wont happen much but it is possible if the client is pressed for time/resources/expertise. And of course will make you very very expensive for them.

Not a fact at all. I'd imagine that all sorts of new ways of operating will need to come into play to get round the expertise exit post-April. Perhaps expenses paid but being inside IR35 wouldn't be a bad position, especially for those that have to stay away four nights a week.

[eek]

How in earth do you manage to draw your next breath?

That's actually a logical question. I know where its going to end up but why should the money go into the company account when its my net salary.

Were I caught and not planning to throw everything in a pension to annoy people, I would be trying to get the agency to pay me personally just for the lols and pain it would cause them trying to explain why they can't

[LondonManc]

That's actually a logical question. I know where its going to end up but why should the money go into the company account when its my net salary.

Were I caught and not planning to throw everything in a pension to annoy people, I would be trying to get the agency to pay me personally just for the lols and pain it would cause them trying to explain why they can't

Interesting bit would be employer vs employee NICs - what would we pay if we were given a net sum or would that net sum simply go straight from corp bank to personal because it's already been "treated"?