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

simonsjdaccountancy · 12th May 2006, 09:08

Few unanswered queries in the thread, so here goes:

1. Bradley - yes, assumed wage of £4800 and dividends to the sole shareholder. Obviously if the S660 result comes out on our side you could split the shares with a non working spouse and get an even better return, but at the time of writing this is so uncertain that I didn't want to build this into the projections;

2. DaveB - in those take home figures I assumed expenses at 15% of the contract value, so on the example of £50,000 a year you have expenses of £7500 pa. Multiply this over the three years gives you £22500, added to the £107,000 gives £129500 which is actually around 86% of the contract value;

3. Bradley - Form 42. See what you mean. It could well be that the Revenue are sitting on these and formulating a strategy for taking down the composites, but I think it fair to say that they have a very limited shelf life the way things are going.

12th May 2006, 09:08	#16
simonsjdaccountancy More time posting than coding Join Date: Sep 2005 Posts: 276	Answers Few unanswered queries in the thread, so here goes: 1. Bradley - yes, assumed wage of £4800 and dividends to the sole shareholder. Obviously if the S660 result comes out on our side you could split the shares with a non working spouse and get an even better return, but at the time of writing this is so uncertain that I didn't want to build this into the projections; 2. DaveB - in those take home figures I assumed expenses at 15% of the contract value, so on the example of £50,000 a year you have expenses of £7500 pa. Multiply this over the three years gives you £22500, added to the £107,000 gives £129500 which is actually around 86% of the contract value; 3. Bradley - Form 42. See what you mean. It could well be that the Revenue are sitting on these and formulating a strategy for taking down the composites, but I think it fair to say that they have a very limited shelf life the way things are going.