Originally posted by malvolio
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: IR35 Agency rate breakdown
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "IR35 Agency rate breakdown"
Collapse
-
-
Originally posted by jamesbrown View PostYou disagree with what?
I am not talking about intentions or what might be possible, I am talking about draft legislation.
There is nothing unclear about this.
A deemed payment is a thing and it's perfectly clear that a deemed payment doesn't change anything else about the contractual relationship. When a worker continues to be fronted by a company, then the deemed payment is made to the company. It's up to the Client and the Fee Payer to decide whether they allow or disallow other types of engagement, such as employment, in which case there is no deeming and hence no deemed payment.
End result is the same, but the remedies in the legislation are utterly useless.
That's why I disagree with your analysis
Leave a comment:
-
Originally posted by JPC View PostWho pushed this IR35 legislation through?
Leave a comment:
-
Originally posted by NeedTheSunshine View PostAnd that's the issue, paying all the same taxes and NI but no perks. But it's a bit late in the day. There is a protest next week (I think 12th Feb although not sure).
Leave a comment:
-
Originally posted by malvolio View PostI disagree. The whole point is that the YourCo is a vehicle with no purpose other than avoiding tax (or, more accurately, NICs). There is no reason to pay YourCo so it can immediately pass it on to you, and there is no reason not to pay it into your personal account.
Except of course the agency still think YourCo and You are indivisible and all they know is how to pay companies, not people. Perhaps in their confused little minds they think paying you personally puts you on their payroll.
Complete nonsense - but then so it the whole fecking exercise.
I'd argue that it's easier to go on to an agency's payroll for the duration of the contract; cut out the umbrella and get paid further up the line without another set of commission being taken.
Leave a comment:
-
Originally posted by malvolio View PostI disagree. The whole point is that the YourCo is a vehicle with no purpose other than avoiding tax (or, more accurately, NICs). There is no reason to pay YourCo so it can immediately pass it on to you, and there is no reason not to pay it into your personal account.
Except of course the agency still think YourCo and You are indivisible and all they know is how to pay companies, not people. Perhaps in their confused little minds they think paying you personally puts you on their payroll.
Complete nonsense - but then so it the whole fecking exercise.
I am not talking about intentions or what might be possible, I am talking about draft legislation.
There is nothing unclear about this.
A deemed payment is a thing and it's perfectly clear that a deemed payment doesn't change anything else about the contractual relationship. When a worker continues to be fronted by a company, then the deemed payment is made to the company. It's up to the Client and the Fee Payer to decide whether they allow or disallow other types of engagement, such as employment, in which case there is no deeming and hence no deemed payment.
Leave a comment:
-
Protest Day
Just found a link on another thread
It's an hour of your time. If you're in London take an early lunch break
Westminster Protest and Lobby Day - Stop The Off-Payroll Tax
Leave a comment:
-
Originally posted by JPC View PostOk thanks to you and the others here responding so quickly, greatly appreciate your time and knowledge.
In the meantime i am going to step up the campaign here IR35 is 100% wrong im happy to go this route as long as im paid holiday and sick pay like every other person paying the same tax an NI rate.
Leave a comment:
-
Originally posted by jamesbrown View PostI don't really get the confusion around this.
It's precisely what the legislation expects to happen.
Sure, we could've predicted that most clients and fee payers wouldn't want to bother with the faff, but this situation is literally the core of what the legislation intended.
Except of course the agency still think YourCo and You are indivisible and all they know is how to pay companies, not people. Perhaps in their confused little minds they think paying you personally puts you on their payroll.
Complete nonsense - but then so it the whole fecking exercise.
Leave a comment:
-
Originally posted by jamesbrown View PostNope, not really, unless you have other work that is outside.
But this is literally how the legislation is supposed to work w/r to deemed payments.
Anyway, in the vast majority of cases, an umbrella is going to make more sense. No deemed payments, just actual payments to an (umbrella) employee.
In the meantime i am going to step up the campaign here IR35 is 100% wrong im happy to go this route as long as im paid holiday and sick pay like every other person paying the same tax an NI rate.
Leave a comment:
-
Originally posted by JPC View PostSo is there any point in me having a LTD company?
Do i just take it up the tuliptah and go umbrella as HMRC has dictated to us minions? (who would paradoxically not exist if it wasn't for us working and creating an economy in the first place)
But this is literally how the legislation is supposed to work w/r to deemed payments.
Anyway, in the vast majority of cases, an umbrella is going to make more sense. No deemed payments, just actual payments to an (umbrella) employee.
Leave a comment:
-
OK this is the response i recived
The rate is at £400 per day, however as this is inside IR35. When working through your Ltd company, this will be on a deemed bases. Meaning employers and employees NI and tax will need to be paid at source
The break down below shows employers NI being deducted, due to everyone’s tax code being different, we are unable to work out the accurate rate after this has been deducted
So is there any point in me having a LTD company?
Do i just take it up the tuliptah and go umbrella as HMRC has dictated to us minions? (who would paradoxically not exist if it wasn't for us working and creating an economy in the first place)
Leave a comment:
-
Originally posted by northernladuk View PostAre you absolutely sure it will be paid to LTD. This is the second time we've heard this this week but never before and ti's against what we thought would happen.
It's been taxed and is net so no reason to be paid to you personally so why the LTDs suddenly being allowed?
DRAFT off-payroll working legislation: Chapter 10, ITEPA 2003 (from 6 April 2020): basic principles: how the worker accounts for and reports monies drawn from their intermediary
This is a draft and may be subject to change
Where the worker draws remuneration or dividends from their PSC, this approach can be used to report information for tax and NICs purposes. The worker’s intermediary (e.g. the PSC) will need relief against its payroll liability if Chapter 10 ITEPA 2003 / Part 2 SSCIR 2000 have been applied.
I guess using your PSC as the intermediary is an option, if your client allows, although many seem to be going brolly only.
Leave a comment:
-
Originally posted by northernladuk View Postti's against what we thought would happen
It's precisely what the legislation expects to happen.
Sure, we could've predicted that most clients and fee payers wouldn't want to bother with the faff, but this situation is literally the core of what the legislation intended.
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: