Ir35

[Gingerbaker]

Apparently Private contractors inside IR35 have to pay additional National Insurance payments even though they are a ltd company as off April 2020. Why should young people who work hard and stay away from home have to suffer. I say take the money off of the wealthy pensioners who had the finally salary pensions etc in the past (parasites) and give it to the people who matter!!!

[Boto]

Why do you think that ‘wealthy’ pensioners who have a final salary pension parasites?

[rockyracoon]

Parasites. How very rude, and who's to say who matters?

[Prudie]

Oooh, not as nice as we first thought then! Do you not think these parasites were not once young people who worked hard?

[ladybirder]

Work hard and provide for yourself during retirement and you're a parasite?? Really?

[bednobs]

there are plenty of contractors who are not young - and plenty of contractors for whom staying away suits them very well

[woofgang]

how are they parasites? Final salary pensions are a part of the employment package and were earned....oh and they are taxed as well!

[Buenchico]

If you're running yor business as a limited company, then you and that company are separate legal entities, with you being an employee of that company. Therefore you should be paying Class 1 NICs (and NOT Class 2 'self-employed' NICs) AND your company should be paying the employer's element of Class 1 NICs.

Too many people have been running limited companies but only paying Class 2 NICs, so the new rules now force the business you're contracting for to treat you as an employee, ensuring that the correct tax and NICs are paid.

There has been NO change in the total amount that you should end up paying. It's simply a tightening-up of the rules to ensure that you pay what's actually due from you.

[JimF]

But it isn't, Chris! That's why it's so unfair! The changes to the IR35 rules mean that the end client, not the contractor, will decide whether the contractor is a "disguised" employee or not. If they decide that the contract falls inside IR35 then, as far as HMRC is concerned, the contractor is a de facto employee. It makes no difference to the end client who, by definition, now gets their cake and eat it where they get a person whom they can hire and fire whenever it suits them but don't have to afford them any of the benefits that a true employee would get, e.g. pension, bonus, travelcard loan, gym membership etc.