(1/5) The three-person tax problem.

It& #39;s possible to work for the same employer and be taxed in different ways depending on whether you& #39;re:

https://abs.twimg.com/emoji/v2/... draggable="false" alt="1⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1">Employed
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2">Self-employed
https://abs.twimg.com/emoji/v2/... draggable="false" alt="3⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3">A limited company

Read on to find out morehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">

(2/5) These differences arise because of the different ways the tax system deals with different things.

Employees pay income tax and national insurance.

(3/5) The self-employed pay income tax and Class 4 national insurance, which is lower than an employee.

(4/5) Owners & sole directors of limited companies can pay themselves a salary so just enough national insurance is paid to qualify for a state pension.

The rest can be paid in dividends, with a lower rate of income tax, while the company still pays corporation tax on profits.

(5/5) We& #39;re exploring the three-person tax problem in our evidence session on Tuesday 20 October at 9.30am as part of our #TaxAfterCoronavirus inquiry.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📺" title="Fernsehen" aria-label="Emoji: Fernsehen">Watch it live herehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">

https://www.parliamentlive.tv/Event/Index/226bccf3-5b87-4db4-9f91-d7a7ba8080d8

And">https://www.parliamentlive.tv/Event/Ind... find out more about our inquiry herehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">

https://committees.parliament.uk/work/465/tax-after-coronavirus/">https://committees.parliament.uk/work/465/...