Income Shifting...........another way to get the freelancers

[Eric Mc]

Is it available to all self-employed individuals?

[trescoman]

kryten22uk said:

trescoman said:

And try having a year off work due to a car accident, and then see where the risk sits.

..the risk sits with the insurance company. Thats what Income Protection is for. I bought it and think its quite reasonably priced.

(but then I do create and price these products for the insurance co's, so i'm biased! )

Never trust one again, they wiggled out of payment, the details are not necessary here, but I'll never have Income Protection again...............insurance companies ugh !!

and that includes the third party insurers acting on behalf of the driver (prosecuted) who caused the accident, what a bunch of $%$%ers, 2 years hence (24 days time) and now where near any real money for loss of earnings, costs or injuries !!

Thats why I'm strongly in favour of signing the petition, we take our choices and take the risks and rewards, but GB & HNRC keep changing the rules and that is not fair...........period.

First its lets all incorporate, and the first 10% is tax free, then the 10% is taken away, and the tax rates are increased, then its lets attack the husbands/wives teams, lose that and then lets change the rules. However income shifting isn’t allowed anymore, except when you get devoiced/separated, then she(he) CAN have half (or more)………..hmmmmm, good old GB.

[Eric Mc]

Quite right.

If they go down this route - there will be a whole slew of Arctic Systems type cases clogging up Appeal Tribunals and the Courts.

[Olf]

Ean218 said:

Noger said:

Employed as in - no holiday pay, no sick pay, no redundancy pay, a days notice to pack your bags and not legally employed anyway (thingy v southern water) ?

Speaking as an employer and an employee:

Holiday pay is worth about 11% of salary.

Sick pay is discretionary apart from pitiful SSP after 3 days which is fully paid for by the employer.

Statutory redundancy pay is hardly anything unless you work somewhere for years and even then they can go bust and you get nothing. Ditto notice.

Employers have to pay approx 10% NICs on top of salaries.

On that basis, along with a factor for job insecurity, it would probably be fair to pay a "freelancer" approx 20-30% more than equivalent employees. However if they don't pay the same amount of tax, or worse, very much less tax, then the differential starts to look very wrong..

That is the reason GB wants to get his pound of flesh and why the rest of the country don't give a toss about it.

You would be a very rare employer if you didn't make use of the specialist expertise within the agency/contractor market and short duration contracts to fill specific need when you don't want to employ. The contract/agency market in key to a sucessful business economy and a premium is due for the same factors.