British Politics

I'd love to know why those who think they are in the know about medical staff not using tax avoidance schemes get their information from.

My thoughts are that these people simply don't have a clue.

 

Agency and ones coming back not 'nurses' Peter

 

I dont think you read the article

"Unscrupulous tax avoidance schemes are targeting agency nurses"

"Nurses and other contract healthcare staff are being targeted in online and social media campaigns by umbrella companies promising higher take-home pay, lower tax bills and less paperwork, says HM Revenue and Customs (HMRC)."

 

Sorry, that hasn't changed my mind.
I know many nurses in real life and can pretty safely say they worry more about feeding families and paying mortgages than trying to avoid tax.
If you had said consultants and top surgeons i could probably accept that (they earn enough to make tax avoidance worth it). Did you notice how your articles kept swinging between nurses and then generic "medical staff"?

 

Because it's not just nurses.
I'm not trying to change your mind.
I'm just pointing out you are wrong.
I've had clients who were nurses and they came to me because they had used an umbrella company and they wanted to sort out their tax properly.
I bet you never asked these "many nurses" who was paying them.
There's 1.3 million people working for the NHS. It's quite likely you wont know anybody who's using an umbrella company.
The NHS uses a lot of agency staff. I'm sure most agencies pay the nurses the same way as the NHS would but some will set up umbrella companies.
You shouldn't say that you don't believe something happens because you don't know about it. It could simply be ignorance on your part.

 

So how do umbrella companies help you pay less tax?

 

I'm sure some of you know that most nurses get paid more than the national average.
Years ago I've been out with nurses. Not one of them told me about the umbrella schemes they used. I'm shocked! I thought that would be the first thing they'd want to tell me.

 

So tell us how these schemes work

 

https://www.itcontracting.com/truth-take-home-pay-claims/

For a start, using an umbrella company will result in reduced tax and NIC.
They can use "loans" that then get written off.
There can be small salaries which are taxed very little and other large payments that are not taxed.
I've been to conferences which may include tax avoidance schemes. They all seem artificial and dodgy to me and I wouldn't get involved.
Any nurse or other medical staff can set up their own company and get paid a small salary (no tax or NIC) and the rest in dividends (lower rate of tax and no NIC).
I have lots of my clients who get paid via a company. That is perfectly legal.
I'm not surprised you don't think nurses don't try to pay less tax. The truth is that some do.

 

See below your question!

 

So you are telling us that all these nurses have umbrella companies ?

 

No. Some might have their own companies.
Umbrella companies aren't run by the nurses. They are businesses that run the umbrella companies and they "employ" the nurses.
The nurses will receive the following:
Small salary - no tax or NIC
Dividends - reduced tax rates no NIC
Maybe extra payments with a bogus description - no tax or NIC

I've seen some umbrella companies say that they have agreed fixed expenses that don't need any supporting documentation and agreed with HMRC - that's a lie - HMRC don't agree these with umbrella companies. HMRC may agree some expenses but they are agreed industry wide and for much smaller amounts.

I'm surprised that you were so certain this claim was bullshit when you obviously don't know anything about this subject.

 

You might be interested in this

https://nixonwilliams.com/free-resources/umbrella/how-umbrella-companies-work

 

So you are only talking about agency workers now and not "nurses" in general as you started out with?

You do realise that the nurses themselves are not avoiding tax, it's the agencies.
Tax avoidance is not illegal by the way, it's open to people due to poorly written tax laws so these companies (or even individuals) are only using the rules as they stand which we all would if we could.

 

Peter gone full ****** attack mode on Nurses for some bizarre reason.

 

Did you not previously vote in the European elections then?

 

I’m going to guess that these agencies use the very same tools that Saxton’s, as either self-employed or a limited company, use to legally minimise there tax liabilities?

 

Remind me about those wind turbines in Texas again?

Dunning-Kruger effect indeed...

 

For the avoidance of any doubt among the ignorant. Many people avoid tax not just nurses. Nurses are some of the people who avoid tax. A fact you tried to deny.