Contractor UK Bulletin Board - View Single Post - Should I trade as a Limited Company, umbrella or composite

HStanton · 7th September 2006, 14:28

Hi all, first time poster, long time reader.

Work for an accountancy myself, won't mention the name.

The real problem with composite's now isn't to do with IR35 it's to do with associated companies.

As you all know, small companies CT is 19%, large companies is 30%. Composites will claim that each ltd company under it is a seperate entity and so it's turnover qualifies for small CT. However the gov has argued successfully twice last year and twice more again this year that all of the ltd companies under the composite are associated because the comp is in control of accounts. Hence the total turnover is vast and qualifies for large CT.

We took on two guys who were personally liable for £15k in backtaxes due to the 11% shortfall.

7th September 2006, 14:28	#108
HStanton Not worth listening to Join Date: Sep 2006 Posts: 1	Composites and Associated Companies Laws Hi all, first time poster, long time reader. Work for an accountancy myself, won't mention the name. The real problem with composite's now isn't to do with IR35 it's to do with associated companies. As you all know, small companies CT is 19%, large companies is 30%. Composites will claim that each ltd company under it is a seperate entity and so it's turnover qualifies for small CT. However the gov has argued successfully twice last year and twice more again this year that all of the ltd companies under the composite are associated because the comp is in control of accounts. Hence the total turnover is vast and qualifies for large CT. We took on two guys who were personally liable for £15k in backtaxes due to the 11% shortfall.