Reply to: Taxed more than I earn.

[eek]

If you go through an umbrella does the client avoid paying VAT?

Could be the reason a lot of banks are so snotty about outside of IR35 contracts (since banking services don’t have VAT on them).

But anything over 50% is ludicrous (you are effectively make yourself worse off since some public sector scummer will outbid you for whatever you are trying to buy)

no joint employment is only possible in very limited cases (and that’s the only way to avoid VAT on a wage bill)

it’s a combination of IR35 and general risk aversion partly because of HMRC and partly corporate memory from what the IRS did back in the 80’s early 90s

[hugebrain]

If you go through an umbrella does the client avoid paying VAT?

Could be the reason a lot of banks are so snotty about outside of IR35 contracts (since banking services don’t have VAT on them).

But anything over 50% is ludicrous (you are effectively make yourself worse off since some public sector scummer will outbid you for whatever you are trying to buy)

[PerfectStorm]

I am assuming you are not a builder, plumber or electrician.

In my part of the world they seem to earn more than they earn rather than be taxed more than they earn.

There's a reason so few of them put in for Coronavirus self employment assistance

"80% of declared earnings? Oh crap!"

[TheDude]

I am assuming you are not a builder, plumber or electrician.

In my part of the world they seem to earn more than they earn rather than be taxed more than they earn.

[cojak]

+1 This isn’t the place to joke about dodgy schemes.

Indeed…

[jamesbrown]

+1 This isn’t the place to joke about dodgy schemes.

[SimonMac]

Pointing him at an implausible tax avoidance scheme doesn't help (and the recent ones are now offering 78% take home while targeting a particular subset of workers).

If he doesn't want to pay the correct amount of tax, there are alternatives, not saying he would like the them any better....

[eek]

Google 85% take home pay

Pointing him at an implausible tax avoidance scheme doesn't help (and the recent ones are now offering 78% take home while targeting a particular subset of workers).

[SimonMac]

Why should I have more taken away from me just because I've chosen to sacrifice more of my life and quality of life to earn more be self sufficient and retire earlier. Again without the need to claim off the state ever.

So where should the burden be for who pays, those who aearn more or less than you?

[SimonMac]

Is this really what hmrc are getting away with now.

I'm paid via a reputable umbrella company. Which looked OK the first week but now it goes something like this.

Total earnings 3500 a week.
deductions 1800
Pay 1700

Or there abouts.

How can that be in anyway fair. I'm taxed more than I literally take home.
Before anyone comments I have some huge medical debts to clear and ive studied so hard for this role and is extremely demanding on me.

Google 85% take home pay

[Smartie]

He's assuming people are generally smart and have been registered with a pension scheme for the last 3 years.

You're right, I'm optimistic like that but frequently disappointed.

[northernladuk]

Sure about this?

"You cannot carry forward unused allowances from any tax year where you were not a member of at least one UK registered pension scheme, or a qualifying overseas pension scheme."

He's assuming people are generally smart and have been registered with a pension scheme for the last 3 years.

[Guy Incognito]

It's the best tax break you'll get and as you haven't yet, you can put in £160k immediately with half of that coming from the taxman

Sure about this?

"You cannot carry forward unused allowances from any tax year where you were not a member of at least one UK registered pension scheme, or a qualifying overseas pension scheme."

[Smartie]

You take home in a week what the average person takes home in a month.

Seriously, get some perspective.

If you care so much about the percentage you take home then fill up your pension. It's the best tax break you'll get and as you haven't yet, you can put in £160k immediately with half of that coming from the taxman.

No-one knows whether they will live to use it, but it also happens to be excellent for inheritance purposes.

[Protagoras]

You must have a proper contractor's house with council tax that high. Downsize and move to a less salubrious area.

- I'm actually looking to upsize! The way the valuation system works I can upgrade to a 4+ bed detached and drop one or two council tax bands. The place I'm in has an excessive valuation from years ago. It's Scotland!

- most of the time it's too wet / cold / windy / dark for me to get motivated to get on my bike!