Quote:
| Originally Posted by Si W As my new accountant can you expand on this? |
Well sort of. Not an area of expertise but have had previous dealings. Best places to get info on this are:
http://www.shout99.com/contractors/index.pl?n=10 http://www.startups.co.uk/What_is_it...F1oEYn0nA.html http://www.startups.co.uk/IR35_Who_d...P1oEYn0nA.html The second 2 are the best.
In reality it is still a very grey area and always will be. If you are a contractor it is likely you have very little expenses (ones I have dealt with have at least) so the calculation actually benefits you slightly initially at least:
If you are under IR35 basically you take the total income, knock off 5% for expenses and the rest has to be a salary (which is where you lose out cos dividends save money).