The Contractor and Self Employed Bitching Thread

[Adpully]

@BobC

I think the problem comes when you get contractors forming one person companies, paying themselves a small salary, under NIC and tax thresholds, then taking dividends at a lower tax rate and a higher tax threshold. See lots of people doing that earning more than me and paying a shed load less tax.

I was a contact engineer for ten years I contracted for the same company for seven years.
I did what you said above.

My experience is was a typical MO for IT and Engineering contractors. Businesses cannot to afford to take them on permanently - They would demand a salary up to twice the permies they work alongside - Obviously unworkable for a business. - I think that HMRC have been trying to close this gap for years as they are definitely loosing out on tax revenues.