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Most[0] countries would still make you pay income tax for whatever you earn for your personal services and not class it as part of the business' revenue. I beli
by someotherperson 5y ago
Most[0] countries would still make you pay income tax for whatever you earn for your personal services and not class it as part of the business' revenue. I believe in the UK this was addressed with IR35[0] and in Australia it is called as PSI[1]
[0] This loophole started being closed in the late 90s/early 00s and continues to be closed in the remaining countries that haven't yet addressed it.
[1] https://en.wikipedia.org/wiki/IR35 https://en.wikipedia.org/wiki/IR35
[2] https://www.ato.gov.au/Business/Personal-services-income/ https://www.ato.gov.au/Business/Personal-services-income/
- fauigerzigerk 5y agoI’m not sure what this has to do with taxing revenues vs profits. Regardless of whether you provide your services through a limited company and regardless of the IR35 status of any particular contract you can always deduct business expenses from revenues before getting taxed. The purpose of IR35 is to stop people from avoiding national insurance contributions.
- midasuni 5y agoIf you’re a business and need to pay for a car to visit customers or suppliers, that comes off pre tax. If you’re an individual and need to pay for a car to go to the office or supermarket, that’s post tax.