Limited deductions.(Brief Article)

FOLLOWING A MEETING WITH THE INLAND REVENUE CONSULTATIVE PANELS AND ASSISTANT DIRECTOR, PERSONAL TAX DIVISION, TO DISCUSS THE IR35 PROPOSALS, TRISTAN MAYNARD REVEALS THE TRUE COST TO PRACTISING MANAGEMENT ACCOUNTANTS

Self employed members in practice, working through their own limited companies or partnerships have traditionally `enjoyed' deducting business expenses in their tax assessments and paying Class 2 or 4 National Insurance Contributions.

Those who draw income by way of dividends have paid no NIC at all and benefited from a relatively favourable Sch