Yeah gotta be honest, the lads who’ve been shoving it in my face how they got the VAT back on this that and the other, who tell me they pay themselves a minimal wage then top it up with dividends etc I do feel it’s a real what you sow situation. Oddly none of them will be at work at my place next week and some of them have been there longer than me!
Funny how not many have a pot to ■■■■ in when things go wrong though.
But as always that’s a small portion. There will be genuine people caught up in this who I do feel for. My mate set up a little domestic building firm (patios, smaller jobs like that) but because hes not been going a year he gets nothing.
There’s a slight irony that there was a thread recently about agency people switching from Ltd Co to PAYE. I wonder if anyone who was Ltd Co switched to PAYE between then and now?
On the seventh of this month, IR35 rules, Umbrella/ Ltd companies have now been delayed one year until April 2021. They government made it clear that it is a years deferral not a cancellation.
robbo99.:
So on the subject of minimising the payment of tax, will parliament now be scrapping many tax efficient products such as ISA’s and labeling all users of ISA’s as tax avoiders? Because sticking to the letter of the definition of tax avoidance then that’s what all of us are that have ISA’s . Any way of legally reducing ones tax liability is deemed to be tax avoidance.
ISA’s are pretty much redundant nowadays except for the wealthy. Rates can be found at better rates in an ordinary savings account and you can earn up to £1000 of interest a year before any tax is paid on savings.
Harry Monk:
But does anyone really think that even a PAYE worker is really going to be paid 80% of their wages to sit at home?
With no overlap, I predict this isn’t going to happen.
If you choose to stop working, chances are you’ll never end up going back again - unless you are in a core industry that is an essential part of the country’s infrastructure, such as trucking.
robbo99.:
So on the subject of minimising the payment of tax, will parliament now be scrapping many tax efficient products such as ISA’s and labeling all users of ISA’s as tax avoiders? Because sticking to the letter of the definition of tax avoidance then that’s what all of us are that have ISA’s . Any way of legally reducing ones tax liability is deemed to be tax avoidance.
ISA’s are pretty much redundant nowadays except for the wealthy. Rates can be found at better rates in an ordinary savings account and you can earn up to £1000 of interest a year before any tax is paid on savings.[/quote
Absolutely true, so now if you have enough in savings you can avoid paying tax on savings in an ISA, which in theory the savings can be many many thousands of pounds accrued since the days of Tessas and any other savings in other accounts aren’t taxed until you receive up to £1000.00 pounds in interest per year, so there are just 2 examples of the government encouraging tax avoidance, ie the legal way of reducing your tax bill.
Ofcourse, just to muddy the waters, the wonderful tax authority of the land, the shambles that is HMRC have a differing view of what is tax avoidance, theres is that of bending the rules to gain an advantage, but the true definition of tax avoidance is to reduce ones tax bill legally. Paying into any tax efficient product is legally reducing your tax liability. Tax Avoidance is not a dirty phrase, it is perfectly legal. So even with HMRC’s take on tax avoidance as bending the rules, bending the rules is not breaking the rules.
Harry Monk:
But does anyone really think that even a PAYE worker is really going to be paid 80% of their wages to sit at home?
As soon as they can declare the crisis over the government will cut the furloughed pay off, only leaving a month overlap so people will have money before they get paid their next wage, and as the furloughed staff technically have a job to go to, they’ll have to return to work keeping them off the benefits system. The fault with that idea in the transport industry is it’s likely that a lot of small employers will shut up shop because they’ve lost contracts and there won’t be work for those driver.
Those furloughed workers along with the rest of the country will be paying higher taxes across board for the rest of their life to repay all the money the government has thrown at this crisis.
. Any way of legally reducing ones tax liability is deemed to be tax avoidance.