Schooliform

[BoldonLad]

What's the situation in the UK? Isn't an employer required by law to arrange a pension, holiday pay, social insurance, sick pay, etc. for employees. If you had a limited company here in Holland, @icowden, you'd be covered.
Or are you just abusing the law to your own advantage?

https://www.thepensionsregulator.go...luCWl58W6SsJmmH9kjoaAuVXEALw_wcB&gclsrc=aw.ds

In the case of a "one man limited company", if the employee/owner, then, PAYE and National Insurance contributions are payable. There are ways to arrange affairs and minimise these payments, within the law.

 

[icowden]

What's the situation in the UK? Isn't an employer required by law to arrange a pension, holiday pay, social insurance, sick pay, etc. for employees. If you had a limited company here in Holland, you'd be covered.

Yes, but not if you are the sole employee and director. It's not required for small one person limited companies.

 

[icowden]

Corporation tax is only payable on profits, not turnover. Your salary would be deducted from turnover, corporation tax would only be payable on the balance (less other allowable deductions, eg material costs etc etc).

You are right. So in my example that would reduce the tax burden for corporation tax to £10k plus the £20k VAT.

That is what the Employer in a "normal" employer/employee relationship does, the Pension, Holiday Pay, Sickness pay is loaded on the price of the product or service provided.

It's not what happens in the world of contracting as a sole trader through a limited company.

 

[icowden]

Do them figures actually stack up? Your take home pay, as it were, is a cost to your company and therefore deductible. You do not pay the VAT, your client does. You're just a conduit passing it on to HMRC.

True, but I could exempt myself from VAT and not let them have the money at all.

 

[BoldonLad]

You are right. So in my example that would reduce the tax burden for corporation tax to £10k plus the £20k VAT.


It's not what happens in the world of contracting as a sole trader through a limited company.

I beg to differ.

As Sole Trader through a limited company, it is your choice how you manage your affairs (within the rules of course).

I operated as a one man limited company for much of my working life.

The amount charged for products/services is also your choice, within what the market will bear of course, the laws of supply and demand are difficult to side step.

Guess what, I paid my taxes, I had holidays, I made pension provision for myself, I even had the odd day "off sick".

 

[BoldonLad]

True, but I could exempt myself from VAT and not let them have the money at all.

But, then, you would not charge your client VAT.

 

[icowden]

But, then, you would not charge your client VAT.

Yes. And the government would get less tax money.

 

[icowden]

Guess what, I paid my taxes, I had holidays, I made pension provision for myself, I even had the odd day "off sick".

Yes. You had holidays when you were not paid. You chose to take out a pension and you didn't get paid when you were "off sick". Typically contractors do not go "sick" for that reason.

 

[BoldonLad]

Yes. And the government would get less tax money.

You do understand how VAT works, I assume? Ie input tax, output tax, etc etc. unless your client(s) are not VATable entities, the VAT you charge them is reclaimable as input tax. Similarly, if you are VAT registered, you can reclaim the VAT you pay on purchases.

 

[Bazzer]

Here comes the whataboutery....

Not really, given that you you have a bee in your bonnet about tax breaks for some.

 

[BoldonLad]

Yes. You had holidays when you were not paid. You chose to take out a pension and you didn't get paid when you were "off sick". Typically contractors do not go "sick" for that reason.

Yes, I chose certain actions, just as you did with your choice of schools, and, no doubt, many other things.

So, for example, I could have taken all of my earnings at the time of earning, but, instead, I chose to set some aside to pay my salary whilst on holiday. This is effectively what happens with any employee, ie holiday pay is accrued on a weekly/monthly basis.

 

[Electric_Andy]

Getting back to Uniform (sort of). My son's school has been getting loads of complaints on the FB page about toilet breaks. They have now locked the toilets because kids were going in there to vape. So now a lot of parents are complaining that their kids are being refused a toilet pass and being told to wait until break time. Also, when going in the toilets they have to remove their blazers and have their bags searched, causing long queues so some don't even get time to go to the toilet. I've noticed my son doesn't drink any of his water bottle any more; he claims he uses the water fountain but it's probably only a few sips. Not a very good situation. In my day a teacher would just walk into the toilets and if anyone was caught smoking they'd get suspended or expelled. That would be a better idea rather than making it unpleasant for everyone.

 

[Deleted member 121]

Getting back to Uniform (sort of). My son's school has been getting loads of complaints on the FB page about toilet breaks. They have now locked the toilets because kids were going in there to vape. So now a lot of parents are complaining that their kids are being refused a toilet pass and being told to wait until break time. Also, when going in the toilets they have to remove their blazers and have their bags searched, causing long queues so some don't even get time to go to the toilet. I've noticed my son doesn't drink any of his water bottle any more; he claims he uses the water fountain but it's probably only a few sips. Not a very good situation. In my day a teacher would just walk into the toilets and if anyone was caught smoking they'd get suspended or expelled. That would be a better idea rather than making it unpleasant for everyone.

They were strict at my school also but never refused toilet breaks. Not every pupil abused it. The school took a practical approach and would have the prefects occasionally patrol them and report. It was a bit stasi but humans could use the toilet when they needed them.

 

[icowden]

Getting back to Uniform (sort of). My son's school has been getting loads of complaints on the FB page about toilet breaks.

Sounds like poor senior leadership. Firstly there should be no restrictions on going to the toilet - it's a basic human right. Any teacher will know if there is a pupil constantly seeking to go to the toilet, and that's easily dealt with through a head of year chat with the pupil - ask if there is a problem, suggest writing to the parent to seek a GP referral for bladder issues etc. On the stick side, anyone caught with a vape - instant suspension.

 

[AuroraSaab]

Draconian toilet measures aren't helpful. Staff who aren't teaching doing a regular corridor and toilet patrol is how it's been dealt with in my schools. Not infallible as it depends on the layout and staff numbers but better than banning loo visits altogether.