Self-employed & Coronavirus

[Gelsons Dad]

All I’m saying is it’s common knowledge in the contract industry and no secret, whether you believe me or not.

isn't this exactly the same thing that goes on in TV and sports?

 

[sir baconface]

All I’m saying is it’s common knowledge in the contract industry and no secret, whether you believe me or not.

I like you as a poster but am mildly surprised that someone who makes a living recruiting such folk doesn’t understand the nuances, particularly given the imminence of IR35 reform.

 

[TheRemainsOfTheDave]

All I’m saying is it’s common knowledge in the contract industry and no secret, whether you believe me or not.

Are these umbrella companies you're talking about or contractors working through their own Ltds?

 

[Ban-jani]

isn't this exactly the same thing that goes on in TV and sports?

There’s nothing wrong with it, it’s just the market.

 

[Ban-jani]

Are these umbrella companies you're talking about or contractors working through their own Ltds?

Their own ltd. Umbrella company contractors are the same as PAYE, essentially, but for a couple of small details.

 

[Ban-jani]

I like you as a poster but am mildly surprised that someone who makes a living recruiting such folk doesn’t understand the nuances, particularly given the imminence of IR35 reform.

Why is that hard to believe? I’m not their accountant, I just know outside IR35 is roughly 10% and inside is roughly 25-27% tax, in the top bracket.

That’s all I need to know in terms of what they’ll pay.

My understanding on IR35 is what constitutes you being inside v outside, which I’m happy to describe to you?

 

[sir baconface]

Why is that hard to believe? I’m not their accountant, I just know outside IR35 is roughly 10% and inside is roughly 25-27% tax, in the top bracket.

That’s all I need to know in terms of what they’ll pay.

My understanding on IR35 is what constitutes you being inside v outside, which I’m happy to describe to you?

OK mate. Let’s leave it there while the going’s good. :)

 

[TheRemainsOfTheDave]

Their own ltd. Umbrella company contractors are the same as PAYE, essentially, but for a couple of small details.

Can't be legal then. Been working as a contractor for many years and you just put your invoices through your books and get charged CT at 19% on profits and 7.5% on dividends taken out (except for the first £2k). You then pay income tax at the same rate as everyone else on total income (salary + dividends) above the £12.5k rate. It really isn't much different than an employee, the benefit is you can charge more per day because they can get rid of you whenever they want, that's the risk. Plus you can get sued. If people want job security, get a normal job, but there's no magical 10% rate I've ever seen. It could be that people calculate their income tax bill after SA at about that rate but they're forgetting they've paid CT and Div tax as well.

 

[Ban-jani]

Can't be legal then. Been working as a contractor for many years and you just put your invoices through your books and get charged CT at 19% on profits and 7.5% on dividends taken out (except for the first £2k). You then pay income tax at the same rate as everyone else on total income (salary + dividends) above the £12.5k rate. It really isn't much different than an employee, the benefit is you can charge more per day because they can get rid of you whenever they want, that's the risk. Plus you can get sued. If people want job security, get a normal job, but there's no magical 10% rate I've ever seen. It could be that people calculate their income tax bill after SA at about that rate but they're forgetting they've paid CT and Div tax as well.

Are you your own ltd co.?

 

[TheRemainsOfTheDave]

Are you your own ltd co.?

Yes