Umbrella Companies / IR35 / Personal Service Companies / Managed Service Companies / Sole Traders / Partnerships / LLP’s / Dividend Taxation
VAT / PAYE / HMRC / NIC I / NIC II / NIC IV / CIS / P11D / P35 / IR35 / P35 / P60 / CT61g
Loads of words and letters, do you really want to understand it all ?
If you have left employment to become “self employed” working by selling your time and expertise to one or two customers you are in H M Revenue and Customs sights.
The Revenue and generally looking to see whether you are self employed or not. As an employee they get a great deal more tax for a lot less effort. If you are working through your own company they will not chase your end user for PAYE, but will chase you using rules know as IR35. This can end up costing you more than PAYE and you still don’t receive holiday pay/sick leave/pension contributions etc…
Using our own in-house expertise, and/or one of our strategic partners we can review your contracts, suggest amendments, discuss various different trading styles and help you with whichever style you want. As importantly we will then monitor the rules on an ongoing basis to ensure your trading operation is still efficient and effective.
If there is a strong contract in place, and the contract reflects reality, the most common option is operating through your own Limited Company. Recent budget changes have altered the rules on the taxation of dividends potentially alterering the most efficient route to extracting funds. Each individual is different but am happy to use up a free meeting to review and discuss the changes and their impact on your finances.
If running through your own company have you considered the following recently ?
- VAT registration – using a small business scheme
- motor and travel expenses
- household expenses / use of home as office
- telephone/mobile phone use
- broadband needs
- pensions payments
- dividends v. salary v. pension
- ownership of the business
- other employees ?
- business insurance
- family costs – can they go through the business – be taxed as such – but still be cheaper than paying privately ? (car for the newly qualified son or daughter as an example)
Let is review these with you.