wonlasewonimi:
You know I said you make a lot of bullshyte look nice earlier. This one above is one of them, you have this unique skillset complex tax code on taxables... I have laughing like a roasted Eid ram here

What's so complex on expenses must be wholly reasonable and exclusively incurred for the business...i don't know you to be less intelligent mate atleast in football.

Yeah I agree I'm a drop out atleast I don't tell porkies about my alma mater!

You want the post code to the hmrc office I work? baba suwe mode again lmao

you know nothing!
you don't work as a contractor so you know far less than i would know. the matter of IR35 alone is a headache. you have to keep wondering whether you are in & out of it.

what's more?
after paying yourself through the company you set up, you have to consider employee NI, employer NI & PAYE. the rest will be declared as the company profit. corporation tax would hammer the profit - then the remainder is then declared as dividends which would also be taxed.

what part of this is not complex? do you even know what IR35 is before i go any further? I don't think so.

^^^stop asking silly questions and stop googling. I have been explaining things to you since he is asking about IR35...emi?

Anyways, it's been good having this banter with you. I'have been multitasking here and I have headache back to my siddon look mode.

wonlasewonimi:
^^^stop asking silly questions and stop googling. I have been explaining things to you since he is asking about IR35...emi?

Anyways, it's been good having this banter with you. I'have been multitasking here and I have headache back to my siddon look mode.

i need googling to know what IR35 is?
is this your hidden admission that HMRC tax codes are complex for contractors?

wonlash, this is how to expose a mediocre lying in public that he knows how things work. you have the mental capacity of a slug.

like i said, holla @ me when tesco sacks you.

coogar:


i need googling to know what IR35 is?
is this your hidden admission that HMRC tax codes are complex for contractors?

wonlash, this is how to expose a mediocre lying in public that he knows how things work. you have the mental capacity of a slug.

like i said, holla @ me when tesco sacks you.

Bobo stop exposing yourself unnecessarily i have been trying to cover your shame but you keep coming back. You know I searched tax returns under your name for the past 15 years and you filed £zilch. In essence, it means you don't work as a contractor. So, you are bullshiiting! I can substantiate this if you dare me. Gerrout jare. Except you are Testing NL web interface

SirShymex:
Er, soulglo, what's up?

You still owe me lol

I'm pretty sure I do not. I unsubscribed from this thread. I'm wondering why I still got an alert

wonlasewonimi:


Bobo stop exposing yourself unnecessarily i have been trying to cover your shame but you keep coming back. You know I searched tax returns under your name for the past 15 years and you filed £zilch. In essence, it means you don't work as a contractor. So, you are bullshiiting! I can substantiate this if you dare me. Gerrout jare.

how can you search under my name when you don't know my name? you are funny, boy! i hope you are not stüpid enough to search under coogar's name.....

is that what you did?

coogar:


how can you search under my name when you don't know my name? you are funny, boy! i hope you are not stüpid enough to search under coogar's name.....

is that what you did?

You really think I'm daft abi. Are you not O.O? bobo yii make you dey look face abeg
BTW are do you do this all day everyday? I'm tired meeeen.

wonlasewonimi:


You really think I'm daft abi. Are you not O.O? bobo yii make you dey look face abeg
BTW are do you do this all day everyday? I'm tired meeeen.

O.O ko, Q.Q ni.
wonlash, abeg e don do. you have turned this whole conversation from what it is to your personal agenda.

you don't know me...whatever you think you know is pure fückery. not even the intelligence agencies know me. so keep aiming your dane gun hoping you would score.

eeeerr, can i come visit you at tescos? i am missing their croissant.

coogar:


O.O ko, Q.Q ni.
wonlash, abeg e don do. you have turned this whole conversation from what it is to your personal agenda.

you don't know me...whatever you think you know is pure fückery. not even the intelligence agencies know me. so keep aiming your dane gun hoping you would score.

eeeerr, can i come visit you at tescos? i am missing their croissant.

lol you are free to come anytime.. we be paddy for jungle na. I go even add chicken wings

wonlasewonimi:


lol you are free to come anytime.. we be paddy for jungle na. I go even add chicken wings

how do i ask of you there?
cos i am sure you used a jamaican passport to secure the job.

coogar:


how do i ask of you there?
cos i am sure you used a jamaican passport to secure the job.

Just come to the one Old kent road, ask for Ralph Tresvant

wonlasewonimi:

Just come to the one Old kent road, ask for Ralph Tresvant

i will pay you a visit next week.

coogar:


i will pay you a visit next week.

Nice will be looking out for you...I have done fuckall today not doing this anymore soon.

Sagamite:


Contractors earn far more because they operate under hgher employment risk than a permanent staff and they actually cost less overall.

A contractor is a flexible resource that can be let go at short notice by a firm. Most times, the company needs give less than one month notice even if the contractor still has longer than that on their contract.

A permanent staff is far harder to let go. The organization would have to make redundancy pay and follow processes well aligned to labour laws. These are time consuming and can cost depending on the years of service.

Hence the high daily contracting rate factors this risk of unemployment into the pay attractiveness. Most contractors work about 8 months a year (working days only, not weekends), some are lucky to do like 11 months. The high contract rate is partly to cover for the risk of gaps in employment of between 1 month to 6 months.

Also, the contractor might have rare specialist skills. Skills only needed for a short while, not a permanent basis. Specialist/rare skills have a premium.

Another issue adding to the high pay is that contractors don't get any benefits like pension, car allowance, healthcare insurance, life insurance etc that companies provide for staff at their level. The high contracting pay is suppose to provide them with funds to get that privately. This for a permanent staff can be worth about another 15-20% of their basic salary.

Companies have to pay certain taxes and charges for permanent staff dependent on (or as a % of) their salary throughout the employment of this staff, e.g. National Insurance Contributions, maternity/paternity leave, PAYE. This can add another 20% (I think) to the cost to the employer annually. These taxes, and charges they do not need to pay for contractors.

Finally, companies deal with all the accounting responsibilities of their permanent staff. These cost money they pay Accounting firms for, as they are very complex (more complex, the more the staff works internationally). Contractors deal with this themselves privately and at their own cost.

These are the core of the reasons why contractors are paid far more. It is high paying, but normally cheaper on the long run for employers.

Contractors also benefit as they can structure/manipulate their accounting to ensure they pay very low tax. Typically, a contractor only pays about 15 to 25% tax from their pay (which is treated as revenue). And this is after claiming all their lunch and transportation costs as tax deductible (that is, a business expense they do not have to pay 15 to 25% tax for).

It is a win-win for firms and good/lucky contractors.

Thanks a lot. That is pretty good for a certification you can pick up quite easily.

However, I believe most companies who employ contractors, also have in-house testers that would corroborate/inspect whatever the contractor is doing. And I know experience/expertise is very important in the IT field. Coupled with the fact that I did basic programming/software testing in Uni, and even with that, you have to know what you are doing and you can easily be exposed. Hence I asked if the contract can be terminated if the contractor doesn't meet up to required standard. It is basically difficult to fake what you don't know, and with an in-house expert supervising your work, you'd be exposed easily. With any field in IT - it is either you know or you don't, and you have to be able to put your expertise into practise. I think only those in the Project Management field who basically with a lot of paper-work and methodologies can pull it off without expertise/experience. Heck, even with software/system designers, you have to understand more than just the basics.

Also, when you earn £500 a day, even if you are self-employed, that should automatically put you in the higher tax bracket. And your taxes should be above 30% monthly. I don't think it is easy to manipulate over £8,000 pm in earnings. Perhaps only if the company keeps a stringent privacy policy. And I doubt they can do that with HMRC.

Finally, there is a new scheme where you can be self-employed as an employee. And with this scheme, you deal with your taxes, expenses, and N.I deductions by yourself.

I just need more clarifications. Thanks.

soulglo:


I'm pretty sure I do not. I unsubscribed from this thread. I'm wondering why I still got an alert

You do! I was gonna make you an offer you can reject, before you went into the angry black woman mode, just cos I'm an alpha male and I'm trying to be in control lol.

You sure know you need to make ya soul glow better than it is now. Make it radiant with a breath of fresh air. And I have got the supreme code for that. The fact the you are fan of the great Bob Marley also makes the message of "one love" pretty much easy. Don't you think?

SirShymex:


You do! I was gonna make you an offer you can reject, before you went into the angry black woman mode, just cos I'm an alpha male and I'm trying to be in control lol.

You sure know you need to make ya soul glow better than it is now. Make it radiant with a breath of fresh air. And I have got the supreme code for that. The fact the you are fan of the great Bob Marley also makes the message of "one love" pretty much easy. Don't you think?

Ok

soulglo:


Ok

Er, I guess you are basically trying to adhere to the gospel in ya siggy, no?

What happened to, "let's get together and feel alright?"

SirShymex:


Thanks a lot. That is pretty good for a certification you can pick up quite easily.

However, I believe most companies who employ contractors, also have in-house testers that would corroborate/inspect whatever the contractor is doing. And I know experience/expertise is very important in the IT field. Coupled with the fact that I did basic programming/software testing in Uni, and even with that, you have to know what you are doing and you can easily be exposed. Hence I asked if the contract can be terminated if the contractor doesn't meet up to required standard. It is basically difficult to fake what you don't know, and with an in-house expert supervising your work, you'd be exposed easily. With any field in IT - it is either you know or you don't, and you have to be able to put your expertise into practise. I think only those in the Project Management field who basically with a lot of paper-work and methodologies can pull it off without expertise/experience. Heck, even with software/system designers, you have to understand more than just the basics.

That would be a question for coogar.

SirShymex:

Also, when you earn £500 a day, even if you are self-employed, that should automatically put you in the higher tax bracket. And your taxes should be above 30% monthly. I don't think it is easy to manipulate over £8,000 pm in earnings. Perhaps only if the company keeps a stringent privacy policy. And I doubt they can do that with HMRC.

Finally, there is a new scheme where you can be self-employed as an employee. And with this scheme, you deal with your taxes, expenses, and N.I deductions by yourself.

I just need more clarifications. Thanks.

No, not really.

You set up your own company, hire yourself.

You pay yourself monthly minimum wage or the most basic. Which will mean you pay:

- zero income tax (as your salary would be under £10,500 per year)
- zero NIC
- zero student loans repayment

So out of that £8,000 per month, your salary would be about £700 a month.

The remaining money, you pay yourself as corporate dividends.

For that, you pay capital gains tax on this corporate dividends, which might come to about 22% of the remaining money after you pay corporate tax on the revenue.

All this tax is after you have removed your cost for travel and lunch. So those two plus your salary are tax free.

Sagamite:


That would be a question for coogar.

No, not really.

You set up your own company, hirer yourself.

You pay yourself monthly minimum wage or the most basic. Which will mean you pay:

- zero income tax (as your salary would be under £10,500 per year)
- zero NIC
- zero student loans repayment

So out of that £8,000 per month, your salary would be about £700 a month.

The remaining money, you pay yourself as corporate dividends.

For that, you pay capital gains tax on this corporate dividends, which might come to about 22% of the remaining money after you pay corporate tax on the revenue.

All this tax is after you have removed your cost for travel and lunch. So those those plus your salary are tax free.

I know how company tax works.

However, with what you just posted. That means you won't declare your source of income if you are basically going to put minimum wage in there, when you are earning far more than that. I get it now.

SirShymex:


I know how company tax.

However, with what you just posted. That means you won't declare your source of income if you are basically going to put minimum wage in there, when you are earning far more than that. I get it now.

It basically means you are exploiting loopholes in the tax system to your best advantage. You can liken it to people like Sir Phillip Green and Lewis Hamilton who are not resident in UK...so they are exempt from UK tax. Something most multinational companies do as well by having their Headoffice in in tax efficient economies and trading elsewhere. It's all legit. Taxation is beautiful!

wonlasewonimi:


It basically means you are exploiting loopholes in the tax system to your best advantage. You can liken it to people like Sir Phillip Green and Lewis Hamilton who are not resident in UK...so they are exempt from UK tax. Something most multinational companies do as well by having their Headoffice in in tax efficient economies and trading elsewhere. It's all legit. Taxation is beautiful!

Lmao...nice. I just used to think it's difficult to do, since I know companies don't pay contractors in cash. So the money can easily be traced. But I like it though lol.

Asians have also mastered that ish with the way they run their corner shops.

SirShymex:


I know how company tax works.

However, with what you just posted. That means you won't declare your source of income if you are basically going to put minimum wage in there, when you are earning far more than that. I get it now.

Wonlasewonimi has already answered.

You are declaring your source of income, you are just structuring it to favour you. It is called "tax avoidance", which is legal. "Tax evasion" is what is illegal.

You have declared your source of income as:

- Salary
- Capital gains/dividends

The £8,000 is being paid to your company as revenue, not you as salary. It is perfectly like paying Accenture, who then pay out of it to their staff as salary and the rest as dividends to their shareholders. In this case, you are the minimum wage staff AND the shareholder.

SirShymex:


Lmao...nice. I just used to think it's difficult to do, since I know companies don't pay contractors in cash. So the money can easily be traced. But I like it though lol.

Asians have also mastered that ish with the way they run their corner shops.

Bro everybody does it...that's what makes contracting enticing to people. You can even spend all the money just make sure you can produce it when its time to file your returns.

Sagamite:


Wonlasewonimi has already answered.

You are declaring your source of income, you are just structuring it to favour you. It is called "tax avoidance", which is legal. "Tax evasion" is what is illegal.

You have declared your source of income as:

- Salary
- Capital gains/dividends

The £8,000 is being paid to your company as revenue, not you as salary. It is perfectly like paying Accenture, who then pay out of it to their staff as salary and the rest as dividends to their shareholders. In this case, you are the minimum wage staff AND the shareholder.

Thanks a lot. I get it now.

How about it if your reg yourself as the only director and shareholder?

Sagamite:


Wonlasewonimi has already answered.

You are declaring your source of income, you are just structuring it to favour you. It is called "tax avoidance", which is legal. "Tax evasion" is what is illegal.

You have declared your source of income as:

- Salary
- Capital gains/dividends

The £8,000 is being paid to your company as revenue, not you as salary. It is perfectly like paying Accenture, who then pay out of it to their staff as salary and the rest as dividends to their shareholders. In this case, you are the minimum wage staff AND the shareholder.

Thanks. I get it now.

How about if you register yourself as the only director and shareholder in your company?

wonlasewonimi:

Bro everybody does it...that's what makes contracting enticing to people. You can even spend all the money just make sure you can produce it when its time to file your returns.

Contracting is sweet apart from the dormant periods when there is nothing. And you know how quick money goes. You will spend about £10,000 within two months without knowing. Especially when your lifestyle goes up due to ya earnings.

That is why most folks prefer steady money or any business that brings money in on the regs.

SirShymex:


Thanks a lot. I get it now.

How about it if your reg yourself as the only director and shareholder?

That is the norm anyway.

- You are the sole director.
- You are the sole shareholder.
- You are the sole employee.

The director is just a registration of the company and who takes blame for any wahala with government.

The shareholder is for you to get the dividends.

Employee is to show who is doing the work and paid salary and has his expenses paid.

The expenses is a big part, as it is like if your firm pays for all your transportation and lunch. That is significant considering the cost of a monthly Zone 1-6 travel card. Imagine the savings you woould make if your company pays for transportation to work and lunch. We are not even talking about others like anti-virus software for you computer (which of course is now "company" computer), part of your rent (because your sitting room is now "company" office), printer catridges etc.

So lets take your £8,000 a month scenario. And the contractor works 10 months a year, that is £80,000 a year.

Remove £700 a month salary, that leaves £73,000 left.

Remove cost of travel from Zone 1-6 at £220 per month, that leaves 70,800 left.

Remove cost of lunch at £7 per day, that leaves £69,400.

I will not bother with other expenses which can remove a bit more as well. It is the 69,400 you pay corporate tax on at 20%.

That leaves £55,520 the contractor would have as dividends. If this is taxed at lets say 20%, the contractor pockets £44,416.

Now considering he has already paid himself £7000 and all the expense benefited his cost of living, add the £10,600 to this. You get £55,016.

Effectively paid tax of about 31% without any advanced accounting practice. It would be way lower.

Their equivalent as a permanent staff would probably be making about £55,000 a year and taking £39,000 home after all the taxes and NIC (assuming no student loan repayments and pension sacrifice).

Oga sagamite, abeg come employ me
Make me sef collect the 8k per month

jaybee3:
Oga sagamite, abeg come employ me
Make me sef collect the 8k per month

Why you dey sell yourself short?

You IT guys make £1000 per day. That is £20K a month for you na.

Sagamite:


That is the norm anyway.

- You are the sole director.
- You are the sole shareholder.
- You are the sole employee.

The director is just a registration of he company and who takes blame for any wahala with government.

The shareholder is for you to get the dividends.

Employee is to show who is doing the work and paid salary and has his expenses paid.

The expenses is a big part, as it is like if your firm pays for all your transportation and lunch. That is significant considering the cost of a monthly Zone 1-6 travel card. Imagine the savings you woould make if your company pays for transportation to work and lunch. We are not even talking about others like anti-virus software for you computer (which of course is now "company" computer), part of your rent (because your sitting room is now "company" office), printer catridges etc.

So lets take your £8,000 a month scenario. And the contractor works 10 months a year, that is £80,000 a year.

Remove £700 a month salary, that is leaves £73,000 left.

Remove cost of travel from Zone 1-6 at £220 per month, that leaves 70,800 left.

Remove cost of lunch at £7 per day, that leaves £69,400.

I will not bother with other expenses which can remove a bit more as well. It is the 69,400 you pay corporate tax on at 20%.

That leaves £55,520 the contractor would have as dividends. If this is taxed at lets say 20%, the contractor pockets £44,416.

Now considering he has already paid himself £7000 and all the expense benefited his cost of leaving, add the £10,600 to this. You get £55,016.

Effectively paid tax of about 31% without any advanced accounting practice. It would be way lower.

Their equivalent as a permanent staff would probably be making about £55,000 a year and taking £39,000 home after all the taxes and NIC (assuming no student loan repayments and pension sacrifice).

Great. That is why you always need an accountant lol.

Initially, I thought you would just pay taxes on the min. Wage and that is it. That would have been some cool money, and denying Queen Eliza her entitlement. And you know messing with her money is suicidal lol.

Thanks a lot.

SirShymex:


Great. That is why you always need an accountant lol.

Initially, I thought you would just pay taxes on the min. Wage and that is it. That would have been some cool money, and denying Queen Eliza her entitlement. And you know messing with her money is suicidal lol.

Thanks a lot.

I forgot to add that the permanent staff still has to pay for his lunch and transportation from the £39,000 (that is, the cost of these comes after tax is taken). So compared to the £55,016 the contractor has to spare, if the permanent staff lives next door to the contractor and eats the same lunch at work, the permie would have only £28,400 to spare in comparison.

We have not even talked about other expenses.

The contractor would be laughing to the bank.

Sagamite:


I forgot to add that the permanent staff still has to pay for his lunch and transportation from the £39,000 (that is, the cost of these comes after tax is taken). So compared to the £55,016 the contractor has to spare, if the permanent staff lives next door to the contractor and eats the same lunch at work, the permie would have only £28,400 to spare in comparison.

We have not even talked about other expenses.

The contractor would be laughing to the bank.

Transportation and lunch are the biggest killers. Especially when you work in the city. Then you have student loans.

But for contractors, you won't always get jobs where you live. Sometimes, it might be out of town. And with that, you won't really get the same offer as London. And you have to foot ya accommodation money - though it will part of the expenses in the final breakdown. But the money is far better, bar the dormant period when you have to keep searching for new offers.