Re: FN-FORUM: PCG

date posted 22nd June 2003 14:10

No they haven't, IR35 means exactly that. The deemed employee suffers, not
the deemed employer. Nanny is responsible for paying all due tax and NI on
95% (approx) of what nanny's Ltd co receives for her service to parent(s).

If nanny used to be PAYE, it would cost less as you wouldn't up nanny's
rate, you'd con her that having a Ltd co would mean that she could pay
herself no wages (min wage doesn't apply to directors) and take all her
money as divis, so no NI for her (or for you) and no CT on first 10,000
(profit). When the IR come up with a demand for more tax and NI, she pays.
Bwhahahahaha! The evil employer wins again. If nanny walks out, get a new
one from Eastern Europe on a fast track visa on the grounds of skill
shortage of nannies who will work for min wage or less.

I write guidance notes for the IR BTW.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Kathy
http://www.vendetta.co.uk
+44(0)7005 982 261
DNRC Minister for Useful but Irritating Information and Trivia
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
----- Original Message -----
From: "James Murphy" [EMAIL REMOVED]
To: [EMAIL REMOVED]
Sent: Sunday, June 22, 2003 11:46 AM
Subject: Re: FN-FORUM: PCG


> Quoting Lists [EMAIL REMOVED]
>
> > > (Although in the case of daytime nannies there may be very little
> > difference
> > > between the second parent's net earnings and the cost of employing
the
> > nanny...)
> > >
> >
> > Well, it'll be a lot cheaper to employ one now. Get nanny to form her
own
> > Ltd co, pay her the same as before. Who pays the employers NI that you
used
> > to pay? Nanny does!
>
> Er, the revenue have just /explicitly/ stopped this. As for being
cheaper - that
> would rather depend on Nanny, it shouldn't - at least not significantly -
as
> Nanny's rate needs to reflect Nanny's costs.
>
> James Murphy
> Consett, County Durham.
>
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