The new dividend tax - does this mean contractors who paid themselvs big divvies

[Deleted User]

caronoel wrote: »

Quite a bit of discussion here on contractors evading tax.

Rather than whinge on an Internet forum, you can directly report your suspicions to HMRC using this form

https://online.hmrc.gov.uk/shortforms/form/TEH_IRF

Lets remember theres a difference between between illegally avoiding tax and using the system to plan your tax legally...

[Deleted User]

chucknorris wrote: »

I think a lot of 'anti-contractor' feeling is because of misplaced jealousy (I have never worked as a contractor). Yes they get better (hourly/daily) pay and have better tax treatment, but they give up job security and comfort (have to move around possibly sometimes also living away from home, have to adopt to new systems and work colleagues frequently). If it is so good, why don't more do it, instead of sniping from the sidelines.

Yep. I've had some friendly conversations with permies over the years who've been interested in how it all works.

100% of the time they all start the discussion with the old - yes but you get paid twice as much per day as most of us. Then you explain no sick pay, no holiday pay, no pension. Then you tell them about times out of work where you rely on savings. Then you tell them you might need to stay away in the week. Then you tell them they can get rid of you with, sometimes, zero notice and you won't get a penny (and they do sometimes).

A lot then say, nah don't fancy that I'll stick with my nice safe permie job.

Point being - its not an exclusive club so don't moan that others are getting something you're not. If you fancy, then go ahead and do the same. If you fancy it because you like you're permie perks then stay as you are but don't moan about the contractors who do things differently.

kabayiri

ukcarper wrote: »

I think there must be financial benefits otherwise why do people opt for it. But I agree the pay should be better to compensate for the loss of holiday pay, security etc. It is a matter of personal preference I have always giving up the chance of higher earnings for the security pension etc.

Before I went contracting quite some time ago I worked for a company who used to send me to different client sites; sometimes at extremely short notice.

Choosing contracting was more about allowing myself a bit more input on where I chose to work. It wasn't a money decision.

I also know a number of contractors who ended up in that work role purely because of circumstance; for example the company they had worked for had gone bust and they had bills to pay quickly!

We *really* do need a bit of a diverse mix in the workplace. That means permanent employees rewarded for providing a bedrock, and temporary workers who can help the business respond to flexible demand.

lisyloo

I think there must be financial benefits otherwise why do people opt for it.

You are assuing people have the option.
Some people go contracting because it's all they can find.
I would like to go contracting but I can't find a contract for which my skills are specific/expert enough, so I would most likely be able to only get a permanent position.
It's very competitive in the IT industry.

ukcarper

lisyloo wrote: »

You are assuing people have the option.
Some people go contracting because it's all they can find.
I would like to go contracting but I can't find a contract for which my skills are specific/expert enough, so I would most likely be able to only get a permanent position.
It's very competitive in the IT industry.

But a lot of people do opt for it.

kabayiri

lisyloo wrote: »

You are assuing people have the option.
Some people go contracting because it's all they can find.
I would like to go contracting but I can't find a contract for which my skills are specific/expert enough, so I would most likely be able to only get a permanent position.
It's very competitive in the IT industry.

I can't think of many industries which have gone through as much change in the last couple of decades.

Tens of thousands of jobs have moved offshore. It's completely reasonable for those who work in the sector to change and adapt the best way they can.

If there was a similar level of change for Judges or Politicians or Barristers there would be an outcry!

lisyloo

But a lot of people do opt for it.

I'm not sure how you can know how many people choose to contract, how many choose to go permanent, how many sleep walk into whatever is there without making a concious choice and how many have no option.

What is the basis for your claim? I'm not saying it's wrong, just wondering what info you have.

I think it's completely fine for people to do either.

ukcarper

lisyloo wrote: »

I'm not sure how you can know how many people choose to contract, how many choose to go permanent, how many sleep walk into whatever is there without making a concious choice and how many have no option.

What is the basis for your claim? I'm not saying it's wrong, just wondering what info you have.

I think it's completely fine for people to do either.

Not sure what you are getting at I've never said or implied that it's every contractor chooses to for financial reasons just that some do. I'm sure that there are many reasons why people are contracting.

lisyloo

You have said

a lot of people do opt for it

.
I'm just asking how you know that.

ukcarper

lisyloo wrote: »

You have said .
I'm just asking how you know that.

Only by the people I know that have opted to I wouldn't think the figures are available and I would also think they vary by industry.