Yeppp perfecfly articulated! There’s a LOT of ego. Personally I find that stuff very odd, it’s no one else’s business and it certainly doesn’t need repeating so often, I think she’s trying to convince herself more than anything.
Looooool which influencer is this? My husband was a contractor for a few years and I never took a salary from his company but did all the admin support for his accountants eg transferred the taxes etc (pretty sure I was the only wife who didn’t out of all his colleagues, I was the only wife with my own job tho) so this is just my experience I’m not an accountant:
They do pay other taxes like VAT quarterly and corporation and then your personal tax liability (I think this is only for additional rate people?) annually but it works out as less overall, which is why people do it. There are other benefits too like being able to buy
tit through the company money as an allowable expense (laptops, cameras, for influencers probs holidays & clothes too). For us the flexibility ended up being the only benefit cos I got really unwell last summer and my husband was able to take 5 weeks off to support me but the rest of it was really
tit for us, far too much admin. We were very above board but some of the men he worked with did a Candice and had all his cousins on payroll to get the money back entirely tax free, we met some (proper villain) accountants who told us how we could “get away” without paying a penny tax, there’s loads of really shady
tit you can do but we elected not to. It’s basically whatever your accountant is willing to sign off and risk their chartered status for tbh
It’s why the government recently introduced IR35 because people were “contracting” for the same employer for years so were basically concealed employees who weren’t paying as much NI/PAYE tax as a “normal” PAYE employee but performing the same function to the company. With contracting and freelance it’s high risk / high reward, like I said this is why it’s normal for a company bank account to have tens of thousands sat in it because that’s your tax liability money and a bit of rainy day fund. Cos you tend to renew in 6 month chunks you need to know you can cover your personal outgoings and tax liabilities if you don’t renew. And tbh that 6 months is a really generous renewing term, some contractors are going week by week and influencers it’s even less it’s one off payments here/there isn’t it.
So you need to look after yourself, you can’t declare to HMRC you’ve earnt £7k the last 10 years (when you’ve really drawn down £60k odd or £140k p/a) and expect them to pad out the difference! I appreciate this is an unprecedented situation that no one could have ever predicted but come the
duck on, you know the score when you’re being a bit cheeky with your accounting! It’s a cheek anyone is complaining tbh!
