06-10-2010, 13:44 | #18 |
HOMO-Sapien
Join Date: Jun 2006
Location: Chelmsford
Posts: 6,692
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The small PAYE + large dividend payment was not to avoid paying tax. It was to avoid paying both Employer and Employee NI which since the contractor and company are effectively the same things, because of auditing laws, the individual ended up paying both where as a normal employee would only pay one half..
As for the tax, the company paid the Tax Credit of 10% and you as in individual paid the shortfall on the personal tax. But again, since this is effectively from the same individual source, the correct amount of tax is applied. You paid your taxes in one way or another but not through PAYE. What the IR felt was unfair, was the expenses which were offset.. IR35 stopped a lot of loop holes that did exist.. To be honest, so what...?? If the people on low income and benefits can cheat the system, then why can't people the other end of the scale. My wife was telling me only last night, that an old school friend she know weighs over 28 stones and has been classed as disabled and receives incapacity benefit among other things. Her husband has given up work to be her full time carer and receives similar care benefits. .. yet they have 4 kids (one only 3 so obviously not that incapacitated) and 4 dogs!!' They play the system well.. and do it legally.. All paid for by the state.. Now tell me .. How that is ******* fair on people how have worked hard most of their lives to get the qualifications and experience to get where they are. Most of these people have made huge sacrifices and gambles along the way.. Those that employ and bring work to others... only for some upstart to say " they earn more than us.. they should pay"!!!!
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