Id say paying 12% more tax than a normal employee is screwed.
no - you need to look into how things work
selfemployed - you pay TAX & National Insurance Stamp - which is fixed weekly amount no matter how much you earn
contractor - you own a ltd company pay Tax, Pay National Insurance & pay employees National Insurance
However, most people then employ themselves on a low rate (minimum wage) & take the rest of the money as dividens.
So instead of paying 20 odd % TAX or 40% tax, they pay 10% or 32.5% - say the company "makes" £50k - instead of paying all that
as a "wage". You pay yourself a fixed wage of say £15.750k & pay the basic Tax rate, then the other £34.250k is paid as a dividen, which
means youd pay 10% tax - before labour took away the 10% tax rate for low earners, you could pretty much take that £50k & only pay 10% tax for
most of it. - IR35 is what closes this loophole, but as everyone will be contractos & no perm. staff - there is nobody to compare their job to, so wouldnt
fall under IR35. - Also theres business expenses.. Parking, Bridge Tolls, Congestion charge, Tools, Equipment, Anything thats to do with your Job
you can get tax relief on.. Computer, SatNav, etc. - as long as you can prove its for the business & business use.
Lets put it another way.. What % of your monthly wage do you actually get? I get over 75% - I lose 25% in taxes, Employers & Employees NI contributions.
I bet your lucky to see 70%
So... whos getting screwed?