Reply to post: Re: Hopefully they can make fairer rules and less of a crap-shoot

Brit IT contractor wins appeal against HMRC to pay £26k in back taxes

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FAIL

Re: Hopefully they can make fairer rules and less of a crap-shoot

if i use the services of a company, lets say crapita, i expect them to employ people to do the work and in doing so do all the things required as an employer employing people like sick pay, holiday, pension etc out of the fee i pay them. if i use the services of a contractor set up as a company they should do the same stuff out of the fee i pay them.

Your getting a great rate and its your decision to take it all as pay or keep some back to pay for sickness, pension etc, or pay yourself the minimum and claim the rest as dividends. Just because your a 1 person vat registered business doesn't mean you can moan you don't get stuff a permie does, its up to you to provide that for yourself out of the rate you charge. Put your charges up if you need to, companies may decide its cheaper to higher permies instead, but the higher rate should mean you then get the sick pay, holidays, pensions etc you think your missing out of, or maybe your higher than permie rates and tax efficiencies already compensate you for that already.

your choice, but i suspect that is the narrative hmrc is heading for. maybe if you acted more like a separate company with those employee related risks and expenses rather than a more tax efficient permie hmrc wouldn't bother looking at you?

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