HMRC "consultants" flouting IR35 shock!

Whilst I think it appalling that HMRC pay money to PSC's in obvious breach of IR35 provisions, what is more appalling is the mis-reporting in the press.

The Mail on Sunday happily shows a table of PAYE payable on salaires in £50k increments, against what the company would pay in CT.

Fine, as far as it goes, but they omit the small but vital fact that the money then has to be drawn from the company and that the final tax is not dissimilar in each case, it is the NI where the saving is made.

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thisistibi's picture

But

thisistibi | | Permalink

Wasn't it the Treasury who paid the "consultant"?

Old Greying Accountant's picture

May be ...

Old Greying Acc... | | Permalink

... don't really care, my point is misleading and inaccurate reporting.

thisistibi's picture

You mean...

thisistibi | | Permalink

...misleading and inaccurate reporting by you, right here on AW? I agree, it's a disgrace :-)

Old Greying Accountant's picture

The government department ...

Old Greying Acc... | | Permalink

... is irrelevent, that is just verbiage, the important issue is comparing apples and pears and coming up with oranges, and anyway, there are probably a multitude of PSC's on the HMRC payroll anyway!

But, I am an accountant not a journalist, and journalists are supposed to pedal fact and to leave the fiction to the accountants (especially if they are preparing accounts for a major bank!).

thisistibi's picture

The Mail

thisistibi | | Permalink

I agree with what you're saying - but this is the Mail! If you value the quality of the reporting you should probably switch papers!  Having said that, I do enjoy reading the Mail as it is quite entertaining...

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