Tax loophole for UK businesses set to close

[fullyautomatix]

Really? I thought "mitigating circumstances" was a fair defense. While "everyone should understand" is something I agree with, it's not realistic when the whole point of PAYE and umbrellas et al is that they handle it for you. I don't think many people understand NI at all, it's just another chunk of your money that disappears but pretends not to be a tax.

I am with Dhoog here. You just assume that the employer is paying NI and what ever gets deducted at source. These days any extra penny that comes in after tax is still way too less for a decent standard of living so you cant possibly expect a teacher to go and find out how to pay more from what is left over.

[d000hg]

But ignorance is no defense

Really? I thought "mitigating circumstances" was a fair defense. While "everyone should understand" is something I agree with, it's not realistic when the whole point of PAYE and umbrellas et al is that they handle it for you. I don't think many people understand NI at all, it's just another chunk of your money that disappears but pretends not to be a tax.

[Ignis Fatuus]

What a load of ignorant dross. Supply pay - essentially working more like we do - pays ~£100/day. If you take holidays into account a teacher has maybe 40 teaching weeks, 200 working days. A mid-pay-scale teacher is on ~25k outside London, and therefore earns MORE per day. YOU do the maths. A top-pay-scale teacher on ~£31k might get £150/day maximum.

Supply rates have not essentially changed in the last decade. When Mrs d000hg qualified it was a fairly good route to go - no politics, no messing about with paperwork (sound familiar?!) - but now it's a joke.

Would you go from a safe permie job to contracting which paid you the same or less per day, for the chance to be waiting each morning for the phone to ring and let you know if you get to work today?

Thanks for that contribution. It makes a refreshing change from the usual ignorant posters on here who divide their time between boasting about how well off they are, and moaning about how easy other people have it.

[The Spartan]

But ignorance is no defense, Oh sorry Hector I didn't know lol

Remember if it looks like beef, tastes like Beef then it's probably Horse

[vetran]

they were stiffed just like everyone else. some accountant decided it was cheaper to do it offshore when someone suggested the staff might lose their NI benefits the accountant said stuff em.

The pay slip probably said 'global pay org' and the tax appeared to be correct, I imagine a number of them contacted HMRC and they didn't mention the fact they weren't paying Employers NI so no one questioned.

[The Spartan]

Both shocking and appalling, where's all the bad press for them? Let's name and shame them

[d000hg]

You may be right with some teachers, but they still benefit from it in terms of increased day rate. How many of these teachers are up in arms that they are paid 12-25% more than they should be - and have been on the phone to these providers to demand that they deduct this amount and pay the NI in full.

What a load of ignorant dross. Supply pay - essentially working more like we do - pays ~£100/day. If you take holidays into account a teacher has maybe 40 teaching weeks, 200 working days. A mid-pay-scale teacher is on ~25k outside London, and therefore earns MORE per day. YOU do the maths. A top-pay-scale teacher on ~£31k might get £150/day maximum.

Supply rates have not essentially changed in the last decade. When Mrs d000hg qualified it was a fairly good route to go - no politics, no messing about with paperwork (sound familiar?!) - but now it's a joke.

Would you go from a safe permie job to contracting which paid you the same or less per day, for the chance to be waiting each morning for the phone to ring and let you know if you get to work today?

[centurian]

My guess is that they didn't think. Agency 1 offers 150 a day, agency 2 offers 170 which one do you pick.

Too true - yet they are still deemed intelligent enough to teach our children

[eek]

You may be right with some teachers, but they still benefit from it in terms of increased day rate. How many of these teachers are up in arms that they are paid 12-25% more than they should be - and have been on the phone to these providers to demand that they deduct this amount and pay the NI in full.

My guess is that they didn't think. Agency 1 offers 150 a day, agency 2 offers 170 which one do you pick.

[centurian]

You may be right with some teachers, but they still benefit from it in terms of increased day rate. How many of these teachers are up in arms that they are paid 12-25% more than they should be - and have been on the phone to these providers to demand that they deduct this amount and pay the NI in full.

[eek]

And who are the tax avoiders in these schemes - millionaire bankers, company directors - no, supply teachers.

No doubt in the staff room, they engage in the normal chatter about how rich tax dodgers are the cause of all the cuts to the schools budget

I doubt the teachers know. The scheme is designed to sae employer ni not employee ni.

From what I read the first some heard about it was when their maternity pay wasn't paid as they didn't qualify

[centurian]

And who are the tax avoiders in these schemes - millionaire bankers, company directors - no, supply teachers.

No doubt in the staff room, they engage in the normal chatter about how rich tax dodgers are the cause of all the cuts to the schools budget

[mudskipper]

I find it disgusting that there are so many NI dodgers out there

Bleedin' Irish!

[kingcook]

BBC News - Tax loophole for UK businesses set to close

I find it disgusting that there are so many NI dodgers out there

[petergriffin]

BBC News - Tax loophole for UK businesses set to close

Patrick Stevens, tax partner at Ernst & Young, told BBC News the loophole needed to be closed.

He said: "This originates from the situation where British companies are sending their employees overseas, so if they're working full-time overseas, it's probably perfectly fair that they are not subjected to UK tax.

"But in some cases people are taking advantage of a bit of a loophole where British workers are being got into the same situation but this needs to be closed down.

"It's the special rule around agency workers that I understand is allowing people to get into this loophole and take advantage of something that was really only meant for people working overseas."