From: Alex Heney 
Newsgroups: misc.taxes uk.business.accountancy uk.business.payroll uk.consultants uk.finance
Subject: Re: QUERY: beginner to PAYE tax & NI
Date: Wed, 26 Apr 2006 16:22:44 +0100

On 26 Apr 2006 03:53:46 -0700, "nagsman" 
wrote:

>Quite!  It's a question I would like answered.  As I IT contrator I get
>clobbered for 40% tax, 12.8% Employers NI and 11% Employees NI because
>much of the work I do (Goverment stuff) does is not IR35 exempt.
>
>It's daylight robbery.  Effectively I pay 63.8% of what I earn in tax.

Are you sure your work is IR35 caught?

Just because it is government work, that does not necessarily mean it
is caught.

If you spend your time working fixed hours, doing just what your boss
tells you, and you get paid for any lulls in the work, and have no
right of substitution, then the odds are you are caught.

But if any of those are not true, there is a good chance you could be
outside.

But of the investigations that have been handled through the PCG
insurance, there have been 1,231. Of which just *3* have ended up
paying IR35 tax. The other 1,228 have been found to be outside.
-- 
Alex Heney, Global Villager
How do you make Windows faster ? Throw it harder
To reply by email, my address is alexATheneyDOTplusDOTcom