Labour’s plans to crack down on tax-dodging corporations revealed

[papasmurf]

I laughed.

The trouble with you Pappy, is that if we all came round to watch you drown on your own bile you still would not get the joke

It isn't a joke, the problem is you can't see that.

[Borchester]

Frankly that is NOT funny, neither was the crack about not paying NI.

Frankly that is NOT funny, neither was the crack about not paying NI.

I laughed.

The trouble with you Pappy, is that if we all came round to watch you drown on your own bile you still would not get the joke

[Nick]

But it seems to impact favourably on the contractor (and lessens the work of the employing company) in that payments would against the invoice, without company devised and calculated deductions.

The latest guidance I'm familiar with states:

The 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) will be repealed from 6 April 2023. From this date, workers providing their services via an intermediary will once again be responsible for determining their employment status and paying the appropriate amount of tax and National Insurance contributions. This will free up time and money for businesses that engage contractors that could be put towards other priorities. The reform also minimises the risk that genuinely self-employed workers are impacted by the underlying off-payroll rules".

The company doesn't take any deductions even under the existing IR35 regulations, the construction industry has some weird CIS clause that takes 20% like the old SC60 but nothing to do with IR35. The new regs means the contractor determines whether the contract is inside or outside of IR35, which is how it was originally. If you're investigated and deemed to be inside IR35 you then have to pay all the PAYE. It's to stop the likes of contract draftsmen from doing a 9-5 job at the same office for years but as a contractor, saving the contractor from paying PAYE, NI and the client paying employees NI / pension.

[Nick]

I expect Nick deals with cash and hand only.

National insurance is a voluntary payment Patman if you're "not earning". He doesn't pay it, he loses credit. He'll need his own pension.

You really haven't got a clue, 1 sugar please. 

[Nick]

Yes.

Well again you're wrong, you don't pay NI on dividends. 

[B0ycey]

I've not tried this, but if you own a company and are paid only by dividends declared each trading year, there'd be no PAYE, but would you be liable for National Insurance...?

I expect Nick deals with cash and hand only.

National insurance is a voluntary payment Patman if you're "not earning". He doesn't pay it, he loses credit. He'll need his own pension.

[papasmurf]

I've not tried this, but if you own a company and are paid only by dividends declared each trading year, there'd be no PAYE, but would you be liable for National Insurance...?

Yes.

[patman post]

If you are not paying NI, really? Explain exactly why not and how not please.

I've not tried this, but if you own a company and are paid only by dividends declared each trading year, there'd be no PAYE, but would you be liable for National Insurance...?

[patman post]

Don't think it is, the only thing that is happening is that the determination is being handed back to the contractor and not the client.

But it seems to impact favourably on the contractor (and lessens the work of the employing company) in that payments would against the invoice, without company devised and calculated deductions.

The latest guidance I'm familiar with states:

The 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) will be repealed from 6 April 2023. From this date, workers providing their services via an intermediary will once again be responsible for determining their employment status and paying the appropriate amount of tax and National Insurance contributions. This will free up time and money for businesses that engage contractors that could be put towards other priorities. The reform also minimises the risk that genuinely self-employed workers are impacted by the underlying off-payroll rules".

[Nick]

Fair enough but frankly I do not believe you are not paying NI unless you are retired or not resident in Britain.

Couldn't care less, I don't believe in missiles, comprendi?

[papasmurf]

No.

Fair enough but frankly I do not believe you are not paying NI unless you are retired or not resident in Britain.

[Nick]

If you are not paying NI, really? Explain exactly why not and how not please.

No. 

[papasmurf]

You're dead right, it ain't funny. No way I'm paying PAYE and NI.

If you are not paying NI, really? Explain exactly why not and how not please.

[Nick]

Frankly that is NOT funny, neither was the crack about not paying NI.

You're dead right, it ain't funny. No way I'm paying PAYE and NI. 

[papasmurf]

Let us hope not.

Only civilians end up on PAYE

Frankly that is NOT funny, neither was the crack about not paying NI.