Retiring

[flook]

The cracking down was technically on their own processes rather than on the contractors. The issue of tax evasion by contractors has not changed, it can still be done in the same way.

Tax AVOIDANCE (which is legal) Evasion is illegal ;)

 

[flook]

It's not me, I already have a small limited company with several customers, one of whom is a poster on BM.

sorry yes, the comment was aimed at the poster who raised the initial question

 

[Citizen of Legoland]

Tax AVOIDANCE (which is legal) Evasion is illegal ;)

Wouldn't lying to the HMRC about your employment status with the aim of paying less tax be classed as evasion?

EDIT: The more I think about it, I would say it can be either. If a genuine error in judgement of working practices has been made by the supply chain then HMRC will go Avoidance. If there's collusion between the parties then they could go Evasion. They just might have the same problems getting the evidence that they had before.

If @Bluemanc100 is still following, don't be worried about this chatter. In your case speak to the company to see what's what and if you like the idea of going Ltd then have a go at the HMRC CEST tool which will test your status. If the company are not used to dealing with contractors/consultants then it's highly likely you will come back as an employee and Ltd would not be right.

 

[flook]

Wouldn't lying to the HMRC about your employment status with the aim of paying less tax be classed as evasion?

Yes, which is the fundamental premise of IR35 which in it's basic form is saying all PSC's are liars and have been evading tax for years. However as a PSC director, I don't consider myself a liar and have worked within the rules governing corporations for 30 years, some which benefit me, others which do not. Therefore I have been avoiding tax, which is the right (and some would say duty) of any citizen :)

 

[denislawsbackheel]

Free money…not sure how many people I know who like to give up that, but to each their own.

If you can afford to make it 10%, that’d be 20% of you cheque going into your investable future.

More is better in this case.

If you up to 10% and the company matches it much more than 20% goes into the fund…

 

[Kompany Car]

My company match pension contribution and I currently only pay in 4%. They will match up to 10% so I was going to up it to 7%.
This makes sense to do doesn't it? I'm not just better off investing the money myself?

An absolute no brainer mate as long as you can afford it.
It's not only what you put into your pension and what your company match but also what you save in Tax and National Insurance, particularly if you are in the 40% bracket.
I wouldn't advocate going too much above what they match however as diversity of investments is also important, plus when it's in a pension you also need to consider that you are at the whim of politicians.

 

[ChicagoBlue]

If you up to 10% and the company matches it much more than 20% goes into the fund…

I see your ellipsis and raise you

….

 

[SWP's back]

Last sunrise on my balcony in Qatar this morning. Looking forward to a change of pace.