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IANAL, but AFAIU this will violate labor laws in many countries. For example in the UK, if you are a contractor that only works for one employer all year, you a
by TechBro8615 6y ago
IANAL, but AFAIU this will violate labor laws in many countries. For example in the UK, if you are a contractor that only works for one employer all year, you are considered an employee. And if the company does not pay tax to the UK it is in violation of labor law.
- mikhailfranco 6y agoBut only an employee for tax purposes (IR35), i.e. you cannot get a tax benefit by paying yourself a minimal salary (just enough for NI social security qualification) and taking the rest in dividends from your company at a lower tax rate. It is still a contract position in other respects, such as termination (contract law applies, not employment law). Some other countries do not have this problem, because, for example, dividends are not (double) taxed at source, and people pay the same income tax rate on their total income, earned and non-earned (interest, dividends).