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Self-employed & Coronavirus
- Thread starter Ric
- Start date
OB1
Well-Known Member
Contractors working outside IR35 do pay less tax and NI than those working inside IR35 but it's still way more than 10%. Dividends are paid out of post tax profits and those profits are taxed at 19% to begin with.
Ah, you didn’t say that before. Between you, can you please post an explanation of how it works?
I might as well log her in mate.
I’ve got it slightly wrong but the difference is huge between inside and outside.
The 10% is only on a particular part.
OB1
Well-Known Member
No sorry, I am wrong there, she’s just said.
They use dividends to get it down but the difference is still
Significant.
Excellent.
Now we are on the same page.
:-)
Contractors working outside IR35 do pay less tax and NI than those working inside IR35 but it's still way more than 10%. Dividends are paid out of post tax profits and those profits are taxed at 19% to begin with.
Yeah you’re right.
Good job I’m not in charge of our contractors accounts :-)
sir baconface
Well-Known Member
No need, mate. I knew you were wrong all along. :)I might as well log her in mate.
I’ve got it slightly wrong but the difference is huge between inside and outside.
The 10% is only on a particular part.
TheRemainsOfTheDave
Well-Known Member
- Joined
- 16 Mar 2017
- Messages
- 6,491
Okay, think we're all at cross purposes, at least I am! Where did the 10% tax claim come from? If inside IR35 the tax is PAYE, although there are different ways to work the contract. I completely avoid IR35, lucky my work is very niche and easy to make it project based.
Edit: Just seen your earlier post, it's a bloody minefield that's for sure!
No need, mate. I knew it was wrong all along. :)
I’m don’t a qualification on managing people at the moment and because it’s an official course I need to have GCSE maths, as I obviously don’t il redoing it. To say it’s hard for me is an understatement.
Okay, think we're all at cross purposes, at least I am! Where did the 10% tax claim come from? If inside IR35 the tax is PAYE, although there are different ways to work the contract. I completely avoid IR35, lucky my work is very niche and easy to make it project based.
Edit: Just seen your earlier post, it's a bloody minefield that's for sure!
Yeah I’ve got it wrong, happy to admit it.
The 10% does come in somewhere but I’ve got it wrong as a flat rate on day rate.
I’ve just asked the Mrs who’s an accountant.