Quote:
Originally Posted by Darkness
Is the UK tax hit really that bad?
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UK based guys on temp offshore contracts will be losing 20% more of their present earnings after tax under new IR35 regime with no pension, sick pay or holiday pay it will be like being on PAYE but no benefits they will have continue paying there own pensions holiday ,sickness, training etc people on PAYE which is only 40% of the workforce offshore will be much better off, but companies only want contractor as most of the work is seasonal .....
but i spend less than 160 days in UK so am non resident for tax but the new rules mean if i get work from uk agent or company even if its not working in UK ALL my assets offshore become taxable its just not worth it , my accountant is firm on that ..as are the employers ,before I was only liable for tax on UK based actual work thru an umbrella company
total nightmare ,, for everyone in the industry in UK ...under the new rules i would be far better off on a Norway contract where I pay 48% tax !!!!!!when i work there .
best solution is to get work in asia, ME, Africa where i would pay very little tax but problem is that UK agents control most of the work now its a catch 22.
my UK based mates are bricking it as now according to the tax advisers and accountants they will have an effective tax rate of 52% once they pay for their NI ,Tax, pension, holiday pay ,training ,accountants while the permies will get all that free and only pay about 38% marginal tax and NI an get free training certs etc
for instance my mate colin lives in Norfolk last year he contract worked much more than me and earned about £64k on jobs in UK , germany, egypt and Italy he paid about £11k in tax and NI via his LTD PSC and another £11k into pensions and training cert and other company deductables costs under new regime he is still going to be paying about £10k for pension and Training certs etc but his NI and Tax bill is likely to be £22k .and the extra complexity means higher accountacy costs too ,last year he had a disposable income of after TAX ,NI,Work related costs of about £42K this year if he gets same amount of work he estimates his disposable income will be only £29k , add in corona virus and job uncertanty for the offshore industry and its making him very nervous same as me ..
he is younger at 51
im semi retired and 62 but still need 3 months work somewhere ????