One month then payroll
Dear Mr Newspaperman,
Your recent article in the Guardian reminds me of an essay I wrote at school in Year 10. I too failed to do proper research and thought that sensationalism would save me from the wrath of people who know better. Alas in Year 10 the consequences were that I got a grade D for some shoddy work. You on the other hand have caused needless criticism of hardworking freelancers and contractors, who for a number of important reasons choose to operate their businesses through small companies.
Claiming tax relief for business expenses as a flexible worker is not exploiting a loophole, any more than your using any form of tax relief is a loophole. For your article to be taken seriously it needs to be factually and emotionally accurate.
Ever since I was born Her Majesty’s Government has given me an annual Personal Allowance to be used before I start paying income taxes, but does my accepting or using this allowance in times of austerity make me a tax dodger? Am I a bad person for using my tax free allowances? So what is the difference?!
If you or the other hacks in offices along the corridor, can show me that you don’t claim tax relief on items you are perfectly entitled to, for the reasons they exist in the first place, I will send you £1.
The other thought that struck me is that rather than reporting a ‘scoop’ from an unnamed government source you are being used as puppet. A scaremonger designed to upset the economy and create unfair, unjustified, unwarranted, unhelpful, unnecessary and undefended animosity between different categories of worker. Well I am sorry to disappoint you. The UK contractor and freelancer workforce is stronger than that, they are bold and proud and like many others have placed their trust in Cameron’s boys and girls to steer the economy further into the Black.
If the flexible workers of the UK are let down it is not because they shirk hard work, neither is it because the vast majority do not fully respect tax legislation. It will once again be because the people advising David and George have failed to do their homework properly.
If I read your article as a Year 10 assessment, my advice would be to make sure you do more research in future, don’t get your words mixed up and worst of all don’t be so easily influenced by the other boys. The only level playing field they are used to is the topography in the grounds of their public school! 4/10.
Another flawed proposal
This latest reported plan for ‘one-month-then-payroll’ has already received huge amounts of criticism from IPSE, FCSA and the contractor community at large. Of course, with the Autumn Statement less than two weeks away we will be posting our reactions and summaries with the issues affecting contractors. Now is a good time to make sure you have a contractor accountant you can trust – with Intouch Accounting you get everything you need to run your company efficiently, including unlimited advice from your Personal Accountant to make sure you’re up to date with everything you need to know and do.
Everything you need for one fixed fee. Call 01202 375 562 or email firstname.lastname@example.org
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.