I'm not sure what sector you've worked in Duke but just quoting figures (without workings) is irrelevant in the real world scenario facing HMRC and the individuals affected. The reality is quite simple. In my game companies rarely recruited employees for projects. They engaged guys like me and when the project finished, we left. If you think that companies will do any different now you are quite mistaken. The introduction of 'cloud' tech has just accelerated the move to offshoring anyway. It is also a fact that in my industry, most contactors are north of 40 years old. The chances of them finding a permie role paying similar £ is almost zero. For those of us north of 50, the chances of actually getting employed are almost zero. We are seen as 'too expensive' and probably too 'dumb' Therefore, most of the work will just go to large consulting firms, most of that work will be offshored to maximise the Profit margin and the overall tax take will inevitably reduce. I've heard the arguments you've used for 20+ years and the answer to them hasn't changed one bit. Thankfully I can watch this one from the sidelines, many ex colleagues of mine can't. I can only wish them luck.
It’s all just envy mate. They want the cash but don’t want to take the risk. No work, no job, no money. If you’re crap, you get sacked with no notice. If you are lazy you get sacked at no notice. But you won’t convert this type from the ‘but you earn more than me *crying*’ mentality.
Yup. It really is as simple as that. The one aspect of the 'old' IR35 rules that summed up the perverse thinking was that you were at risk if you managed to win 'repeat business' with a client ! I'd like to see them try that one with Wipro
You need to factor in other elements: above a turnover 80K a business needs to register and collect VAT @20% was that in your sums? 12500 tax free personal allowance NI contributions at 12% <50K NI 2% >50K 1st 30K dividends is at 7% above that is at 32.5% corporation tax at 20% How many days paid holiday does an employee get? sick pay? protection if you are made redundant? how many days notice? bonuses? you need to provide your own equipment? insurance? accountants? travel expenses? how much time between contracts to find work? I know as an employee i paid a lot of tax, but i was fairly safe, i claimed a lot of my travel expenses, i didn't need to worry about looking for work approx every 3 months, and i got good health and life insurance. yeah you can be more efficient with tax as a business but it aint no free lunch man...
Wrong. my business is 95% +related to Ducati Motorcycles and this bike is a company vehicle - promotional bike which is fine. When the business purchased a new Pani R this was shown as stock on my books, all against the advice of my Chartered Accountant. No fiddles here, never even done an unreceipted sale
Yawn. As usual, knows more than the combined knowledge of those who have studied and get paid to do it It’s an asset, right? And an asset, at disposal time, needs to be disposed of, right? And it’s value is assessed and any vat due it’s paid based on that sale or value and any corp tax paid due on any ‘income’ (which the asset is either as a sale or a valuation) is due. So you buy for 15, this is a cost to business, save 19% corp on 15. then sell for 25, this is a revenue so pay dope on 25. anything else and you are tax evading. Looking forward to your post at some time moaning HMRC don’t know what they are doing as they bang your with a huge bill and you’re being prosecuted for tax evasion. ‘guessing you’ll tell the judge he’s wrong too
Yes, my accountant knows, he gets paid for it Why assume everyone tries to fiddle the tax man? Maybe you have in the past? But not me I really don’t understand your silly attitude and quite frankly your words don’t make any sense as a reply to my post
Sorry @bradders , I'm not an accountant, but I do have an MBA.... and @Exige and his tax advisors are 100% correct, suggest you get a new advisor for yourself. You've used a whole load of words you've learnt and mixed them all up. Best you go back to PAYE and let someone else worry about all this tax and business stuff.
The advice I received was 20% of the value of the motorcycle was considered benefit in kind where the vehicle was tax/insured by the company. I don't know if that is still true. But you have discussed tax planning with an accountant and/or your financial / pension advisor?
Some of your numbers are wrong. corporation tax is at 19% Tax on dividends 2019-20 For the 2018-19 tax year, there was a big cut in the dividend allowance down to £2,000 (from £5,000 previously). Here’s an example of a self-employed person working out their tax liability for the 2019-20 tax year. They earn £12,500 as salary and £50,000 as dividends. The rates and allowances used are all for 2019-20: £12,500 of salary is tax free, because the personal allowance is £12,500 £2,000 of dividends is tax free, because the dividend allowance is £2,000 the next £35,500 is taxed at the dividend basic rate of 7.5 per cent the final £12,500 is taxed at the dividend higher rate of 32.5 per cent Better still if you only pay yourself £719 per month there is virtually no NI class one or two to pay, while retaining the pension credit for the year. Further benefits can be had by paying into your company or personal pension. My advice may contain nuts.
I can confirm that @Exige paid no tax on the Exact-Start leads he suppled for my Hyperstrada, and I know this for a fact, watch him. He didn't do a kit for the bike, but when I measured up for him, he had the leads manufactured and posted to me for free. I never paid a penny for any of it, despite offering, he wouldn't hear of it. I do owe him a pint for his act, but I'll make sure I pay the taxes on that at Squires in the summer, he won't get away with it, the dodgy git.
As with pretty much every other thread on this site, it degenerates to name calling and insult throwing. What a shit site this has become. just for some information for those who don’t fully understand VAT, if you charge someone an invoice for £1000 plus vat of £200, the business who you charge that Vat to wilL almost certainly claim that Vat back, so the Govt has made precisely nothing. Only the final end user pays vat to the Govt that no one claims back.
Insurers and banks can’t. Or only a small percentage of they can linked to direct operational costs. And as a sector they are a large source of demand.
And it's usually you TBF - this Forum is still the best out there, you only see it when you are posting and this is when it deteriorates apart from Bradders indiscriminate attacks on me of course, but he's cute
