Couple of snippets for all you IT contractors out there....

1. You can spend up to £150 per employee on a Christmas Bash. Just give them the wonga, no receipt needed.
2. From April next year you can dump up to £215,000 per annum into a pension scheme - No tax.
3. Also, if you were to remortgage your gaff and buy-to-rent another place then you can dump all the profits into a pension. No Tax and no CGT.

That's three, no a couple as previously stated.

 

sounds easy????????????..mind you..no i aint ..**** it...be...
happy...:S ....(blaze)

 

Bless 'em.

Didn't really turn out as they'd hoped?

 

Hi,

Aren't your pension contributions limited by your salary ? Most contractors take a very low salary (to avoid tax and NI) and then either take the rest in dividends or take out a loan against the dividends (paying low interest).

If what you say is true then most of us contractors will be quids in.

Cheers, I'll be on to my bead counter later.

 

Dont most contractors operate under umberella companioes now, inorder to avoid IR35?

 

It's a pretty poor contract that's not IR35 complient tyrone.

 

It's pukker right enough. Well according to my new bean counter anyway. I hope he'd right cos I'm well in the **** if he's not. Work till I'm 80+..... oh aye.

 

I know, and whilst i am not a contractor myself most of my work mates are, and it appears that here the company are less than co-operative.

Even down the fact that they don’t do renewals until the last min.

And some people have not had a rate increase for 5 years!!!

Looks like the NHS projects are the only place to get stupid money these days.

 

Pension Contributions from April 2006

will be up to 100% of earnings, capped at £215,000

So you can't whack loads in without paying the tax on it in the first place, regardless of how creative your bean flicker is

 

RE: Pension Contributions from April 2006

you will only be able to have a maximum fund value of £1.5m (i think) after which you will pay tax on the excess.

 

Its about time the IR closed the loopholes on the leeches.

Charge em back tax for the last 5 years.

Lop of their nads and send em to live in featherstone.

 

RE: Its about time the IR closed the loopholes on the leeches.

nonsense they are working in volatile niche in the market, and hav none of the security we have as full time employee's.

But yet provide the flexibility that business needs. They earn twice as much as me but I wouldn’t have there lives style. One guy sat opposite has to travel form Devon every week to work here in Leeds. And the good be shown the door tomorrow without any reason . They deserve a few breaks.

They are not leaches at all, but people running one man band businesses who are effectively avoiding tax. That’s tax avoidance not tax evasion

 

I work with and personally know dozens

and most of them have been here, at the same place, years. Much against the IR's own rules. The IR seems incapable or unwilling to do anything about it though my employer has been steadily weeding them out.

There is no possible justification for people whom are earning 60k a year paying less tax than people who earn 10k.

Factiest Fact of the day.

I stand by my original synopsis..leeches.

 

RE: I work with and personally know dozens

some of the facts in your statement mean you must work at the same place as me !!

comapanies like Whipro Newland and Budge and KPMG are the real leeches,

 

Tax dodging? or just not following the rest of the PAYE sheep?

I pay my own pension, paye, ni, expenses and every-f@ckin'-thing-else. I also do my own accounts like any other small business.

My conscious is very clear.