Your figures are not Kerak's figures. He specifically refers to '80% of invoiced hours'. Invoiced hours is a gross figure, not a net figure. He's self-employed, and he's paying 20% of his income in taxes, and keeping (or 'retaining') the other 80%.
Your figures are not Kerak's figures. He specifically refers to '80% of invoiced hours'. Invoiced hours is a gross figure, not a net figure. He's self-employed, and he's paying 20% of his income in taxes, and keeping (or 'retaining') the other 80%.
Invoiced hours are indeed a Gross figure and it is almost impossible to retain 80% of this figure AFTER all expenses and taxes are paid, as my example has shown
Even if someone's expenses equate to 15% of their Gross, their profit is then 85% of their Gross and their tax would be minimum 20% of this 85% profit figure.
So for every €100 invoiced, €15 would be spent on expenses and €17 would be spent on taxes leaving the contractor with just €68 from his invoiced amount of €100
This €68 retained equates to 68% of their invoiced figure and nowhere near the 80% claimed by Karak.
First off, can you learn how to spell.....
This doesn't quite fit with the reality of self-employed people boasting about keeping 80% of their income.
You're right, of course. They are generally keeping their heads down so as not to draw attention to how they pay less tax than employees. I'm sure Kerak will get booted out of the select club for letting the cat out of the bag.
The self-employed person is entitled to nothing. Granted they can apply for JSA which is means tested but why should the employee get JSB (non-means tested) when the employer / self-employed gets nothing.
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