Tax..

[festive]

Correct. If the contractor idea worked as it did all jobs could end up doing the same. Less tax would be collected. That sort of job can have disadvantages though. No guarantee of work all of the time. Getting a mortgage may prove difficult. I think there are also get outs as far as the employer is concerned but not sure about that.

Anyway - the tax people decided to plug the hole as it was cropping up more and more often. It can still pay way more then people get when employed the usual way. People who do it successfully say the same thing. Have to get used to regular moves to a new work area with different people in it. Bit like changing jobs rather regularly,

Yes no.

In order to stay outside of ir35 you have to move more often or prove you are not a regular replacement for a perm role working in the same way but 'benefitting paying marginally less tax as a contractor'

Again let's be clear as a contractor outside ir35 you are not paid holiday you are not paid training etc. You have to take on all of these yourself just as a self employed tradesman has to.

Some people aren't cut out to do this... rely on company annual returns to back up a credit application for a mortgage and In turn opt for the low risk easy option of a perm role under the wing so to speak mitigating risk but being paid less. Paid sick pay holiday pay training etc. It's a life choice we should be allowed to take. But it seems for the next generations of today this is being taken away.

I'm fine I made my money before such communist style regime took over. But it leaves me frustrated for our future generations being so manipulated and bullied into such lack of choice on how they may want to work and be self sufficient and not reliant on the state.

 

[ajohn]

Yes, they're called recruitment consultants.

No but they may do that as well. A company may not want to employ some one for a limited time so they get a contractor in instead. Time periods vary from months to the longest I have come across which was around 4years. They are usually just intended to do specific jobs that need skills the company lacks or doesn't have the extra man hours needed for them.

LOL I do know something about this area as some thought I was nuts having a normal full time job. It's not that an easy area to get into but each task completed adds to reputation and that can also be used to boost income.

 

[ajohn]

up a credit application for a mortgage and In turn opt for the low risk easy option of a perm role under the wing so to speak mitigating risk but being paid less. Paid sick pay holiday pay training etc.

I do know some one that gave up contracting purely to get a mortgage. Software area. He decided to remain in the job after getting the mortgage. I never asked why but from working with him I'd say his skill set was a bit too narrow and common to make contracting that attractive even though he would probably earn 2 to 3x more. Maybe not all year though.

 

[noseall]

People who work hard and who build a framework to support themselves and their family now and for thr future shouldn't be penalised.

That's the rich and middle earners ruled out then. I guess you mean the poorest, least successful should pay according to your ethos.

Brilliant.

 

[ajohn]

That's the rich and middle earners ruled out then. I guess you mean the poorest, least successful should pay according to your ethos.
Brilliant.

Curiously the low tax political party is collecting more tax in total than Wilson did. In fact I think they have reached a record. No doubt come the general election a surplus will have built up allowing some sort of reduction. Actually due to inflation levels Sunak has had a bonanza yet rate of GDP growth is staggeringly low. Some things are expected to get worse in coming months and interest rates expected to reach 2% at some point. Fine as a control but many of the factors that cause inflation are out of the government's control. A corporation tax cut was supposed to cause companies to flood in but didn't so it went back up again. These are more interested in arranging things so that they pay the lowest possible amount anyway. The latest idea is put some money into a couple of gigafactories. Batteries as they will need to be made here to sell into the EU. I have heard that the brief for one company is to make the batteries better and last longer. Lots of countries will be doing the same. To be meaningful car sales numbers need to continue at least at current numbers. Will they ?

Inflation always falls at some point when demand and prices stabilise but costs increases due to inflation tend to remain. Falling GDP due to deflation is seen as bad news. Cut interest rates again to boost demand?

 

[oph]

I'm under an umbrella at the moment.

My day rate is 426 and I take home min 5k a month.

Rather it was CIS or better still , I was perm.

 

[festive]

That's the rich and middle earners ruled out then. I guess you mean the poorest, least successful should pay according to your ethos.

Brilliant.

The 'voice of the poor people' arrives fresh from another luxury ski trip and attempts to regurgitate a negative spin.
To clarify your lack of comprehension paying 6k a month or 50% of his earnings deducted its wrong. Maybe you do resent people like this, I don't as it invariably means sacrifices along the way significant ones too. Unless you're gullible enough to believe wealth is just a lucky wave opportunists surf home without effort.

Poor sick and elderly should all be supported. People who can't be arsed to work and are smokers/obese etc should be penalised. They cost us money.

Anyway enough of feeding troll.

 

[noseall]

I guess you mean the poorest, least successful should pay according to your ethos.

Brilliant.

No answer from the grandstanding bullsh itter.

 

[JohnD]

I'm under an umbrella at the moment.

My day rate is 426 and I take home min 5k a month.

Rather it was CIS or better still , I was perm.

IME a contractor on 420 a day is roughly equivalent to a permie on £42k a year

 

[ajohn]

50% of his earnings deducted its wrong

Band Taxable income Tax rate
Personal Allowance Up to £12,570 0%
Basic rate £12,571 to £50,270 20%
Higher rate £50,271 to £150,000 40%
Additional rate over £150,000 45%

50% ??????

The contract companies take a cut as well. The best areas to get into are ones where companies do not have enough work in some area or the other to justify full time employment. I came across a case recently. Large children's hospital, their computer system went awol. They had to go back to records on paper until a contractor arrived to sort it out. Then stuff the paper stuff in to update records. This doesn't happen very often so no need for a full time person.

I've done similar part time as other than picking kit and getting it running maintenance needs were low. The network grew so the work was put out to contract. I warned them that it was with a rip off company so that changed and 2 people employed. As 2 they needed a manager. OTT really. LOL The change occurred when a director had to go in during the weekend and hang around till the contractors appeared.

 

[charliegolf]

I've known a few people that got paid through one of those umbrella type companies. Supply/agency teachers mostly. Always moaning about their costs/stoppages. I always wondered why they just didn't get an accountant and sort themselves out but they were all dimbo's as far as that stuff was concerned.

Yeah, top line £110 a day. A really good accountant is gonna turn that pittance into...? For free, of course.

 

[oph]

IME a contractor on 420 a day is roughly equivalent to a permie on £42k a year

How have you come to that conclusion?

 

[oph]

IME a contractor on 420 a day is roughly equivalent to a permie on £42k a year

Try again xx

 

[JohnD]

How have you come to that conclusion?

Personal experience (not of those particular figures) of what people are paid

I note your screen capture uses "net" and "required" which both muddy the waters and are not the same thing.

 

[oph]

Personal experience (not of those particular figures) of what people are paid

I note your screen capture uses "net" and "required" which both muddy the waters and are not the same thing.

Well I take home 1250 a week. Hope that makes it easier to digest