Originally posted by kar
Dunno how you manage that, but since I work inside of IR-35 I have to effectively pay both employee and employer NI. And I can't just pay myself a rubbish salary and take the rest as a dividend which means I also have to pay the top tax bracket too.
And in my current position I can't work around it.
Big Guns - touche :-)
You had to pay employer and employee NI before IR35. I agree, obviously IR35 is a crock of shit. Either you are an employee, in which case you get all the benefits and only have to pay employee tax, or you are a company, in which case you employ yourself and can choose your wage and take dividends.
I am contracting in Switzerland, and should pay a total of about 28% deductions. The problem is that it all depends on where you live, and for 2006 I thought "Hey I pay the tax at source, so what is the point in doing my tax return". I found out recently. Despite paying tax at source, I have been told that I owe 22,000 francs for 2006, (this is over 10,000 pounds). Apparently, I am unable to appeal this since I didn't within 20 days, (at a time when I was going through divorce and my family leaving the country so not actually opening my mail). I therefore have to pay tax that I don't owe, just because of paperwork.
You may think that the UK system is bad, but trust me even in the "tax friendly" Switzerland, it can be far worse.