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  • To understand how companies work for the self-employed
  • To learn about the different tax rates for various employment states
  • To understand how the self-employed take income
CPD
Approx.30min

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See Income tax and NICs – simple comparison 2017/18

While the tax regime for personal service companies is complex and ever-changing, there are considerable tax and NIC benefits for those who can persuade HMRC that IR 35 does not apply. Dividends remain the favoured route for continuing profit extraction once NLW, pension contributions and tax-efficient benefits have been addressed.

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George Bull is a senior tax partner of RSM

Key points

Philip Hammond misjudged the mood among his party and had to pull his plan to increase Class 4 Nics to the self-employed.

Self-employed status looks to be a far more attractive place to be than employed.

 

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. A self-employed person gets charged income tax at 45 per cent but Class 4 Nic at 9 per cent on prots up to £45,000. True or false?

  2. At what tax rate can profits in a company be retained at?

  3. Seepage of taxable income from a high-tax regime to a low-tax regime is a recent problem, true or false?

  4. When does an IT contractor get charged as an employee, under IR35 rules?

  5. Which of the following is NOT a way to withdraw funds from a company?

  6. What has had an effect on dividend returns?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To understand how companies work for the self-employed
  • To learn about the different tax rates for various employment states
  • To understand how the self-employed take income

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