You might also be interested in
Replies (4)
Please login or register to join the discussion.
Employer's NI
Don't forget that single-director limited companies can no longer claim Employer's Allowance on the first £2,000 of Employer's NI, either.
All it means
Is that these guys will now be doing is paying the full share of taxes like everyone other worker in the UK, self employed do not get £3000 off their tax to employ themselves so why should sole directors. I do not get the sympathy. I am a strong believer in capitalism but it needs to be fair and everyone needs to take care of the UK.
However the rich will get richer I am sure.
Contractors suffer Budget Blow
What world do you live in?
There are thousands of "employees" in the construction industry who have been forced - initially to take on self employed status and subsequently limited company status. The purpose, quite simply, so that the "Employer" can avoid giving the employees rights to holiday pay, statutory notice, sickness benefit, their benefit of their "employers" NIC contributions, redundancy entitlement. In addition the Company's 'Managing Director' can turn up for work on any day and sent home again - without notice - and needless to say without because he (his company) is effectively on a is on a 'zero hours' contract (or no contract at all).
The individual I have in mind - providing he puts in 40 hours per week his Company can earn the princely total of £18,000 per annum (gross) - now the Company" will lose the annual Employment allowance. Now he needs an accountant to prepare accounts and submit them to HMRC and Companies House and get severely kicked on penalties if he is late - this used to be dealt with on and end of year submission - by his "Employer". There are 7 such limited companies working for this cowboy "main contractor" - all part of the 1,107,620 new "companies" formed in 2013 and 2014 - all part of "Cameron's record period of growth".
I understand the point to high flyers who are earning 6 figures - but these guys working for a wage which is about 80p per hour above the living wage (which in itself is a joke).
I think if you were in their position - and your feet ran a little closer to the ground - who knows - you might just "get" the sympathy.
No difference
That is no different to how self employed work they are not guaranteed work either ,they pay an accountant to do a return and plenty of them come out with less £18000 and work just as hard if not harder . They also do not leave suppliers unpaid and hide behind ltd status and restart new companies . So no I have no sympathy and my feet run very close to the ground.