Contracting and avoiding tax

[Peter]

Any IT contractors out there using an umbrella company?

I've signed up for Prosperity after hearing good things especially regarding expenses without receipts and mitigation of IR35.

any testimonials?

If earning £350 a day what should I be looking at taking home a month based on a 6 day week (maximum) over a typical month

Rgds

 

[Vlad the Impala]

If you're on £350 a day, why not just pay the tax and get on with it instead of trying to avoid paying your fair share? Oh yes, I forgot, this is a capitalist society so we should leave it to the poorest to pay for the services we enjoy.

 

[bhaexpress]

I use Prosperity and they seem to be on the ball. It seems some companies don't like them (Computer People for one, SCR for another) as the kick ass when they don't get paid.)

 

[Peter]

...but that's just it (!!) as a contractor I have to pay MORE tax than a FTE, how is that fair?

 

[Simster]

I don't bother - I'm insured to the hilt and a member of PCG - but the guy who sits opposite me is happy with the service he gets from being an umbrella company. It seems that the IR have given up fighting IR35 legislation in truth.

The disadvantages of being in an umbrella company are a) the fees (I think he pays 2% of his turnover) and b) the increased difficulty of drawing on your money. You can't just write a cheque any more apparently.

 

[Scoffers]

It's been a long while since I had my own Ltd company. This was before the IR35. It was worth while as long as you didn't spend the corp tax and don't take the piss with expenses

 

[Simster]

If you're on £350 a day, why not just pay the tax and get on with it instead of trying to avoid paying your fair share? Oh yes, I forgot, this is a capitalist society so we should leave it to the poorest to pay for the services we enjoy.

Under IR35 legislation I would be paying a lot more in tax percentagewise than you - and reap none of the benefits. The reason is that the government expects self employed people with a small number of clients to pay employers NI tax (12% or something) AS WELL AS employee NI. How is that fair then?

 

[Vlad the Impala]

Under IR35 legislation I would be paying a lot more in tax percentagewise than you - and reap none of the benefits. The reason is that the government expects self employed people with a small number of clients to pay employers NI tax (12% or something) AS WELL AS employee NI. How is that fair then?

My heart bleeds.

 

[Peter]

...so the tax man only comes knocking when your expenses are ott? my mate's been doing it a year...prosperity have been filling in some of his timesheets for him, with massive expense claims, staying at a hotel everyday of the week for starters...

He's loving it, no need to produce receipts...call me cynical but that sounds too good to be true.

(Sorry Vlad)

 

[zefarelly]

contracting can be very lucrative, but I think it should be outlawed for public service positions, its financially crippling for the NHS for example, as well as making some people a lot of money for doing nothing, thats criminal

IT isnt a real job anyway so it doesnt count either way, the sooner the industry collapses the better

 

[Simster]

My heart bleeds.

Sorry, what is your problem again?

 

[zefarelly]

Under IR35 legislation I would be paying a lot more in tax percentagewise than you - and reap none of the benefits. The reason is that the government expects self employed people with a small number of clients to pay employers NI tax (12% or something) AS WELL AS employee NI. How is that fair then?

fair doesnt come into it . . .but companies will pay you twice as much to compensate for the fact, ytour just greedy capitalist !!!!! and get all stroppy about it

 

[Simster]

Companies will pay the market rate and no more, zef. I'm a contractor because I'm shit at company politics but a decent programmer. The job insecurity is also a risk I am prepared to take, as is the potential shift in market rates...

 

[Peter]

fair doesnt come into it . . .but companies will pay you twice as much to compensate for the fact, ytour just greedy capitalist !!!!! and get all stroppy about it

If companies wanna pay me more to be more for being a contractor that's their problem. Why should I work permanantly for some greedy corporation when they can potentially lay me off at anytime and treat me like dirt, I'm getting the money that I'm worth here, and I'm not being any companies bitch in the process.

 

[bhaexpress]

I'm a contractor because at my age I have no choice. No company will offer a 50 year old a permanent job. I'm also repeatedly told that I am 'over qualified'.

An employer can't be sexist, racist or homophobic but they sure as hell can be ageist.

 

[Simster]

To be honest, it always amazes me how many companies are ageist. It's going to be an even bigger problem if it's not addressed prooperly because I suspect we're all going to need to work for longer than ever before because we simply don't pay enough into our pensions.

 

[Vlad the Impala]

If companies wanna pay me more to be more for being a contractor that's their problem. Why should I work permanantly for some greedy corporation when they can potentially lay me off at anytime and treat me like dirt, I'm getting the money that I'm worth here, and I'm not being any companies bitch in the process.

Oh, so you want all the perks but aren't prepared to pay the associated taxes that pay the country's bills. What a gent. "I'm alright Jack - stuff the poor"

 

[Wozza]

Any IT contractors out there using an umbrella company?

I've signed up for Prosperity after hearing good things especially regarding expenses without receipts and mitigation of IR35.

any testimonials?

If earning £350 a day what should I be looking at taking home a month based on a 6 day week (maximum) over a typical month

Rgds

Out of interest, why did you come to NSC to ask this?!?

 

[Juan Albion]

Re: Re: Contracting and avoiding tax

Out of interest, why did you come to NSC to ask this?!?

Source of all wisdom, fount of all knowledge. Our reputation precedes us.

 

[Simster]

Oh, so you want all the perks but aren't prepared to pay the associated taxes that pay the country's bills. What a gent. "I'm alright Jack - stuff the poor"

He's not saying that. He's saying he'd rather be his own boss and look after his own tax affairs than sell his soul to a big company which in turn and in all probability will pay far less tax than you think is acceptable.

Personally, I'd be happy for this government to increase income tax. I don't think we pay enough...