• 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.

November 22nd - The death of contracting as we know it

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #71
    I see they punted the abolition of Class 2 NICs for sole traders to 2019, so a 148 quid per year non-tax cut (good day to hide bad news).

    Comment


      #72
      Maybe we need a "What news UK government departments are burying today" thread.
      "You’re just a bad memory who doesn’t know when to go away" JR

      Comment


        #73
        Originally posted by breaktwister View Post
        If HMRC have conveniently ignored elements of the law (MoO) in creating CEST then why has there been no legal challenge issued? Is it because Hector claims it is only an "advisory" tool? They cannot claim it is only advisory but also claim to stand by the output/decision.
        One of the doctors unions (?) Is in the processes of planning an application for judicial review I read somewhere. They have a consultant who has 8 outside decisions from various review services but CEST say's no. I have a feeling the dimwit clicking the boxes hasn't got a clue what they are doing.
        Theirs a real body of cases coming through now that seem to prove its not fit for purpose.
        How long before the penny drops at HMRC towers? Probably never they've got ministers calling out the 'unfair' tax advantage to line up the changes they'll have to save face.

        Comment


          #74
          Originally posted by BrilloPad View Post
          Just so I am clear, if I was IR35 caught could I pay myself and my wife an income? Or do I have to pay it all as income to me?
          Originally posted by eek View Post
          If inside it's your salary so it has to be paid to you - no income splitting with the wife.....
          To be pedantically precise, he can pay his wife a salary if he wants (she'll take it all eventually anyway ). He can pay a salary to his next door neighbour for walking his dog if he wants.

          But he has to pay personal income tax and NI on the deemed payment, either way. They don't care what he does with the money that is left after the deemed payment is made.

          Comment


            #75
            Originally posted by WordIsBond View Post
            To be pedantically precise, he can pay his wife a salary if he wants (she'll take it all eventually anyway ). He can pay a salary to his next door neighbour for walking his dog if he wants.

            But he has to pay personal income tax and NI on the deemed payment, either way. They don't care what he does with the money that is left after the deemed payment is made.
            So if I am inside IR35 and pay myself just below the upper tax limit and my wife just below the upper tax limit, then no upper rate tax is paid?

            Comment


              #76
              Originally posted by BrilloPad View Post
              So if I am inside IR35 and pay myself just below the upper tax limit and my wife just below the upper tax limit, then no upper rate tax is paid?
              No. You have to apply the deemed payment calculation to the income from the engagement for each worker (fee earner) proportionally. So you can't save tax by paying your wife a salary.

              Comment


                #77
                Originally posted by WordIsBond View Post
                To be pedantically precise, he can pay his wife a salary if he wants (she'll take it all eventually anyway ). He can pay a salary to his next door neighbour for walking his dog if he wants.

                But he has to pay personal income tax and NI on the deemed payment, either way. They don't care what he does with the money that is left after the deemed payment is made.
                When it comes to tax please don't be pedantic as it usually causes confusion to most people. Keeping what we say simple means that things we suggest aren't likely to come back and bite them later...
                merely at clientco for the entertainment

                Comment


                  #78
                  Originally posted by eek View Post
                  When it comes to tax please don't be pedantic as it usually causes confusion to most people. Keeping what we say simple means that things we suggest aren't likely to come back and bite them later...
                  Fair enough. It's good to be very precise with tax but in this case it added nothing, so your point is well taken.

                  Comment


                    #79
                    Originally posted by eek View Post
                    When it comes to tax please don't be pedantic as it usually causes confusion to most people. Keeping what we say simple means that things we suggest aren't likely to come back and bite them later...
                    Does this help... inside IR35 = PAYE on all income only tax saving is pension or childcare if operating via a brolly!

                    Comment


                      #80
                      Originally posted by lucycontractorumbrella View Post
                      Does this help... inside IR35 = PAYE on all income only tax saving is pension or childcare if operating via a brolly!
                      Minus 5% expenses?
                      Best Forum Advisor 2014
                      Work in the public sector? You can read my FAQ here
                      Click here to get 15% off your first year's IPSE membership

                      Comment

                      Working...
                      X