Reply to: Umbrellas in the firing line next

[moggy]

With the govt constantly bemoaning the fact these QC lead schemes are too many and move to fast to stop, why don't they just audit a few, get the names of the agencies and start looking into them. Within 6 months all these offshore schemes would be all but out of business.

[centurian]

While I doubt the emp's NI would be directly passed on in full, there would definately be a squeeze on either the teacher's rate, or an increase to the school.

And what about "expenses", which if gamed correctly (i.e. bordering on fraud), can make emp's NI look like lost change.

[lithium147]

They only mention NICs. Does that mean they are paying proper income tax?

[moggy]

So passing (a cut of ) the saved NI contributions on to the supply teacher?

or the agency

[Fandango]

So passing (a cut of ) the saved NI contributions on to the supply teacher?

[LisaContractorUmbrella]

But surely the supply teachers aren't any better off using an offshore Umbrella than an onshore as they'll still have to pay the Tax\NI so end up with the same in their pocket, it's really the schools doing the tax avoiding as they are going with the cheaper offshore equivalent as surely their rates will be lower than a UK umbrella as a UK umbrella will have to pay employers NI contributions no?

I would assume that their rate will be higher as the employer's NI contribution isn't being paid

[Fandango]

But surely the supply teachers aren't any better off using an offshore Umbrella than an onshore as they'll still have to pay the Tax\NI so end up with the same in their pocket, it's really the schools doing the tax avoiding as they are going with the cheaper offshore equivalent as surely their rates will be lower than a UK umbrella as a UK umbrella will have to pay employers NI contributions no?

[The Spartan]

It's crazy that they were recommended but given the fact that it means more in your pocket people were bound to sign up to it. Tax is a hot subject at the moment there was article about Apple only paying 2% tax outside the on the weekend.

[LisaContractorUmbrella]

24,000 contractors and 900 agencies involved apparently Supply teachers caught in offshore tax row: Taxpayers 'lose millions because staff are employed by foreign firms' | Mail Online Can't believe that agencies are 'recommending' this scheme to contractors.

[centurian]

HMRC seem to think very firmly that freelance teachers should be paying NICs. Okay, "pay up" might be their default answer, but the language here is much firmer than for, say, IT contractors.

HM Revenue & Customs: IR35: Countering Avoidance in the Provision of Personal Services - FAQ's

I suppose IT contractors can argue that their PSC is really the first step into becomming the next Gates/Jobs/Zuckerberg. How can a freelance teacher argue they are a business.


But the most galling thing is that teaching unions themselves campaign against tax avoidance

Ipswich NUT: KERCHING! The celebrity guide to tax avoidance
UNITE:NASUWT staff | Organising towards a common purpose

Plus dozen's of other links

[cojak]

Umbrellas in the firing line next

ROFL HANG THESE BLOODY TEACHERS. Posh bastards think they can just get away with tax evasion and the common man won't notice?

Watch your mouth, we are much posher than teachers.

[malvolio]

£90 a week (not per day).

Picky picky...

[dogzilla]

ROFL HANG THESE BLOODY TEACHERS. Posh bastards think they can just get away with tax evasion and the common man won't notice?

[captainham]

ALso interesting to note that on a day rate of £160, they are not paying £90 a day in taxes. So much for a 20% tax rate.

£90 a week (not per day).

[malvolio]

Mmm... supply teachers committing rampant tax avoidance

Crass hypocracy considering the public sector teaching unions have lambasted tax avoidance. Will they call for supply teachers to be hounded by HMRC in relation to their expenses.

Also, is this a PAYE umbrella, or an offshore scheme

It's a Channe; Islands based one. They are saying that the workers are their employees and the channel Islands don't pay NICs, therefore a UK-tax-resident, UK-earning, UK-working employee doesn't need to pay taxes... Yeah, right. It's the same old argument and is of course entirely legal, since there are no extant laws to stop it.

ALso interesting to note that on a day rate of £160, they are not paying £90 a day in taxes. So much for a 20% tax rate.

This could run and run.