Re: Any news on whether the BBC pays their side of the bargain?
>My Accountant explained that post IR35 and you were working through a Limited company and paid youself a salary then you had to pay both Employee and Employer NI contributions.
That is on what you pay yourself, which is typically less than what you invoice. This ruling is effectively saying your personal taxable income is the before VAT invoiced amount (minus a small allowance for expenses) and thus PAYE and NI should have been calculated on this.
If my memory is correct, this calculation ignores whether you have paid other employees out of your fee, VAT and any other tax collected and paid on the monies. Obviously, any taxes (other than your personal PAYE and NI) paid on the monies received are non-recoverable and cannot be used to offset your liability...
Biting the hand that feeds IT
