* Posts by Nerdie

3 posts • joined 19 Jul 2019

Industry reps told the UK taxman everything wrong with extending IR35. What happened next will astound you

Nerdie

Re: In a recent Poll...

Contractors are paying more tax because they pay 20% VAT and 20% corporate tax and %7.5 dividend tax. See my latest post for details.

What HMRC needs to do is go after Google, Amazon and Facebook. They earn billions in this country and pay almost no tax. (I remember one year Facebook paid 14k tax)

Nerdie

Well said

Nerdie

A contractor who earns 100k in a year generates 47.2k tax (VAT, corporate, dividend, income tax and NI)

If the same contractor worked as permanent employee he\she would be paid 80k at best, because employment has additional costs as as employers NI and Pension contributions. This person would be paying 25.5k to the treasury as income tax + NI. The employer would be paying 11k per year as NI contribution.

This is a loss of tax revenue 12k to the treasury per year per contractor.

The Treasury is expecting to 3.1b revenue from this IR35 ruling do not have a clue about the tax rules.

DO not feel sorry for the contractors, feel sorry for the lost revenue to the treasury which are meant to pay for schools, NHS and Police and other services!

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