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Previously on "IndyRef2 : This time it's war!"

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  • TestMangler
    replied
    Originally posted by agentzero View Post

    I should have worded it with additional "...if you want to get any contract signed."

    Up until 2018 you had sod all chance of getting an agency to agree to have a Scottish Ltd Company provide PSC equivalent services. I know two people who had to set up English Ltd Companies instead. Agents being quick to ask if I had a Scottish Ltd Company and that they hoped not, prior to contractor friends having issues, suggested it wasn't a good idea.

    As a guess, I expect many end clients were based in England and even Scottish agencies having formed English Ltd Companies resulting in domains being rightly or wrongly limited to England only.
    I contracted from 1994-2016 with a Scottish Ltd Company and was never once asked this question and don't recall it ever even being a point to be discussed.

    Leave a comment:


  • agentzero
    replied
    Not quite, it's all above board and the usual payment route everybody decent person uses. I was astounded to learn that my total remuneration isn't included in the figures that are allocated to Scottish tax payers. The last few years I've entered the higher rate, due to taking more dividends. I and every PSC contractor in Scotland who uses an England based Limited Company is not counted as a higher rate taxpayer by the ONS. This applies to any size of Limited Company. If you consider the number of people this applies to, it's easy to see that the current system of calculating how many higher rate Scottish taxpayers there are is lowball and inaccurate. It's a statistical error that is not an accident.

    It affects any future referendum, as we're all lumped into English tax stats instead of Scottish. Most richer people earn via an England Limited Company, so the figures are heavily skewed right now. It needs broken down.

    Leave a comment:


  • ladymuck
    replied
    Originally posted by agentzero View Post

    In what way am I forgetting? Monies paid in dividends and a salary not attracting NICs aren't registered in Scotland for a Limited Co based in England. The dividends I receive from the Ltd Co registered in England are considered to be based at the company address: Accountant address that must be in England.

    I'm fully aware that taxes are treated differently based on location of the individual, but the figures for those of us receiving monies from a Ltd Co based in England are not included in tax-take and distribution within Scotland in UK gov reports. 'Higher Earners' section excludes us, as we're paid in dividends. If we paid ourselves remuneration only by PAYE then we would appear on the list of higher earners in Scotland.
    So you're saying you are resident in Scotland yet pay English tax rates on income you draw?

    Sounds a bit tax fraudy to me

    Leave a comment:


  • ladymuck
    replied
    Originally posted by agentzero View Post

    Four agencies I've worked with have specifically told that if my company is a Scottish Ltd Co then it's a no-go. Date range 2014 to 2018. Includes larger groups such as Hays and TekSystems/Allegis Group.

    I'm suggesting that agencies registered as English Ltd Cos and/or clients registered as English Ltd Cos didn't want to have a Scottish Ltd Co as the contractor. I don't see why clients would care, as it's a b2b contract with the agency for them, so I assume some agencies had a blanket policy for reasons unknown to me. If you can expand, such as you not having this issue, then that's helpful. I know people who have purposefully registered an English Ltd Co and the associated hassle, such as mail forwarding address required or an accountant with an address in England, to ensure they can apply for the contracts that demanded an English registered Ltd Co.
    Being registered in Scotland means that operation of the company is liable to Scottish law, not English. There are some quirks in the Scottish legal system that are probably make things a bit more complicated.

    Leave a comment:


  • Mordac
    replied
    Originally posted by agentzero View Post

    For PSCs this doesn't apply. Salary is the same as yours. For most here it's £8840 + dividends of £41430.
    Are you from Brigadoon, by any chance?

    Leave a comment:


  • agentzero
    replied
    Originally posted by ladymuck View Post
    Which nation the company is registered in has no bearing on the personal tax status of its directors / employees. The company can be registered in England & Wales but the director be resident in Scotland and their income is therefore subject to Scottish tax law.

    Someone is forgetting that a LtdCo is a separate legal entity to the individual.

    EDIT: what will be interesting is if/when Scotland gets control over other taxes such as CT for Scottish registered companies...
    In what way am I forgetting? Monies paid in dividends and a salary not attracting NICs aren't registered in Scotland for a Limited Co based in England. The dividends I receive from the Ltd Co registered in England are considered to be based at the company address: Accountant address that must be in England.

    I'm fully aware that taxes are treated differently based on location of the individual, but the figures for those of us receiving monies from a Ltd Co based in England are not included in tax-take and distribution within Scotland in UK gov reports. 'Higher Earners' section excludes us, as we're paid in dividends. If we paid ourselves remuneration only by PAYE then we would appear on the list of higher earners in Scotland.

    Leave a comment:


  • agentzero
    replied
    Originally posted by Paralytic View Post

    Wrong again. Please stop spouting this rubbish.



    "I know two people" does not mean "sod all chance" (and I'm sceptical that there's not more to this)



    I've no clue what you're trying to say here.
    Four agencies I've worked with have specifically told that if my company is a Scottish Ltd Co then it's a no-go. Date range 2014 to 2018. Includes larger groups such as Hays and TekSystems/Allegis Group.

    I'm suggesting that agencies registered as English Ltd Cos and/or clients registered as English Ltd Cos didn't want to have a Scottish Ltd Co as the contractor. I don't see why clients would care, as it's a b2b contract with the agency for them, so I assume some agencies had a blanket policy for reasons unknown to me. If you can expand, such as you not having this issue, then that's helpful. I know people who have purposefully registered an English Ltd Co and the associated hassle, such as mail forwarding address required or an accountant with an address in England, to ensure they can apply for the contracts that demanded an English registered Ltd Co.

    Leave a comment:


  • ladymuck
    replied
    Which nation the company is registered in has no bearing on the personal tax status of its directors / employees. The company can be registered in England & Wales but the director be resident in Scotland and their income is therefore subject to Scottish tax law.

    Someone is forgetting that a LtdCo is a separate legal entity to the individual.

    EDIT: what will be interesting is if/when Scotland gets control over other taxes such as CT for Scottish registered companies...

    Leave a comment:


  • Paralytic
    replied
    Originally posted by agentzero View Post

    For PSCs this doesn't apply. Salary is the same as yours. For most here it's £8840 + dividends of £41430.
    Eh? Are you saying those resident in Scotland don't pay Scottish income tax if they're paid via their own PSC? That's complete rubbish.
    Last edited by Paralytic; 23 September 2021, 14:56.

    Leave a comment:


  • Paralytic
    replied
    Originally posted by agentzero View Post

    I should have worded it with additional "...if you want to get any contract signed."

    Up until 2018 you had sod all chance of getting an agency to agree to have a Scottish Ltd Company provide PSC equivalent services.
    Wrong again. Please stop spouting this rubbish.

    Originally posted by agentzero View Post
    I know two people who had to set up English Ltd Companies instead. Agents being quick to ask if I had a Scottish Ltd Company and that they hoped not, prior to contractor friends having issues, suggested it wasn't a good idea.
    "I know two people" does not mean "sod all chance" (and I'm sceptical that there's not more to this)

    Originally posted by agentzero View Post
    As a guess, I expect many end clients were based in England and even Scottish agencies having formed English Ltd Companies resulting in domains being rightly or wrongly limited to England only.
    I've no clue what you're trying to say here.
    Last edited by Paralytic; 23 September 2021, 10:50.

    Leave a comment:


  • agentzero
    replied
    Originally posted by ladymuck View Post

    It's been possible to register a company in Scotland since 1856. I guess your idea of 'a few years ago' is a bit different to mine.

    https://www.nrscotland.gov.uk/resear...s#Registration
    I should have worded it with additional "...if you want to get any contract signed."

    Up until 2018 you had sod all chance of getting an agency to agree to have a Scottish Ltd Company provide PSC equivalent services. I know two people who had to set up English Ltd Companies instead. Agents being quick to ask if I had a Scottish Ltd Company and that they hoped not, prior to contractor friends having issues, suggested it wasn't a good idea.

    As a guess, I expect many end clients were based in England and even Scottish agencies having formed English Ltd Companies resulting in domains being rightly or wrongly limited to England only.

    Leave a comment:


  • agentzero
    replied
    Originally posted by Mordac View Post

    If you are a resident of Scotland, you will be taxed at Scottish rates for personal tax. (Until you decide to move to the right side of the border .)
    For PSCs this doesn't apply. Salary is the same as yours. For most here it's £8840 + dividends of £41430.

    Leave a comment:


  • Whorty
    replied
    Once the Scots see all the successes of B****T then they'll be begging to stay part of the UK .... where are we at so far?

    Return of Pounds and Ounces
    Queens mark on pint glasses
    Part trade deal with US on sheep
    More powerful hoovers (are we getting that, it was the EU who took away our suckers, surely we get them back now)
    All car reg numbers must change their plates to UK and not GB

    Anything I've missed? Yeah, the Scots will be gagging to stay in the UK

    Leave a comment:


  • Mordac
    replied
    Originally posted by agentzero View Post

    The nuances are in the data sets. As this is a contractor forum:

    If you're a Director of a Limited Company formed in England, which was all Limited Companies up until a few years ago, then your corporation tax, dividend tax and income are considered to be in England, even if you reside in Scotland.

    When tax intake figures are published they are incorrect, because those who are resident in Scotland but Directors of Limited Companies - PSC or more than one Director, are monetarily considered to be in England. This is a flaw in the stats that, as you can imagine, lessens the number of higher rate tax payers in Scotland quite a bit.
    If you are a resident of Scotland, you will be taxed at Scottish rates for personal tax. (Until you decide to move to the right side of the border .)

    Leave a comment:


  • DoctorStrangelove
    replied
    Originally posted by SimonMac View Post

    Click image for larger version  Name:	giphy.gif Views:	0 Size:	2.40 MB ID:	4183581
    would have done.

    Leave a comment:

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