The IR35 changes were all about getting more tax, you’re right. The government didn’t have the means to go after individual ltd co.s to check if they were actually outside and claim the tax back if they weren’t.
By shifting the responsibility to the end client, they knew companies wouldn’t take the risk and therefore would put a lot more inside IR35.
It’s less bodies to police and large companies would police themselves.
There are contractors earning £600+ a day, at the same client for years, who are paying 10% tax maximum, who really are getting away with murder but then there’s those that are paid much less, have periods outside of being contracted, where they’re not earning, who I feel for.
If true then it’s better than a kick in the bollocks.I had a call last night after accountant did some more reading up. They are pretty sure I will be entitled to the scheme which pays up to 80 per cent of salary on the PAYE scheme.
It is a grey area in the scheme but you can still work on your business as a director. Including all the things you will still be doing, chasing and submitting invoices, doing the books, payrolls and chasing down new work on behalf of your business.
Essentially, I would still bring money into the business as normal (working in truth) but that is through my efforts as director, keeping the business going, so the money I could get as a perceived furloughed employee would be applicable.
No, the government’s logic was that we’re all in this together.
Even if you took money out of your company in the most legal and tax efficient manner.
I still pay a stamp via my monthly PAYE to ensure I get a state pension entitlement.
It's a complete red herring by some people to suggest a proportion of salary being paid in dividends is some sort of dodge.
I pay self-assessment, corporation tax, dividends tax, PAYE.
well, it’s a dodge in the sense that it leaves you personally paying less tax but why shouldn’t you? Nobody is obliged to set up their business in the way that best suits that taxman. You probably did what you did on advice, and it was perfectly legal. And yes, you take dividends out after you pay your corporation taxes. So there is nothing wrong with the way you have set yourself up legally or morally.
And, for the benefit of the country generally you are not working in the way you normally would.
but the government in its wisdom has chosen to say ‘fuck you.’
when they said ‘we will do whatever it takes,’ they were lying.
I understand that mate but even then, It was not a dodge for me. I was ordered to do it by the media organisations I supply, otherwise, no work. Pretty much standard fare for any freelance media types.
I derive income from various outlets, so never a question of taking piss out if IR35 - I know some big fish at the BBC who were essentially only being paid by them and that was indeed a tax dodge.
Dividend allowance is £2k per couple, so me and wife can take £4k out of the company without paying tax...until they tax you 20 per cent on that for self-assessment!!!
I was purely sole trader (self assessment) for the first 15 years of my working life, but I couldn't keep up with paying tax twice a year in July and January.
Dividends has gone from non-taxable, to £5k allowance per couple to £2k. There is no real tax advantage that I can perceive, certainly seem to have missed the boat on that front.
sorry, blue, I knew some media organisations insisted on that set up, I should have remembered. Anyway, I wasn’t intending to suggest there was anything dodgy about this, it’s perfectly normal and perfectly legal.
The government’s response seems to be ‘live on your credit cards.’ I can’t actually understand what else people in that situation are supposed to do.
I dont pay myself any dividends, just a salary. Which is great, but my understanding through this job retention scheme is that i would gave to furlough the company. Which if i did that id have no company to come back to