Should I trade as a Limited Company, umbrella or composite

[Nixon Williams]

Originally Posted by freshblue

Most of the "managed" composites e.g. Brooksons / Nixon / Giant etc pay divi's in the same timescale as the funds received so based on that frequency you get the benefit there and then. Quarterly dividends I guess could be deemed more business like e.g. you are assessing the profitability in the business before paying. Smoke and mirrors....

Just to point out that Nixon Williams does NOT operate composite companies. we only offer straight limited company operations.

We do assess the profitability of the business when calculating all dividends, there is no smoke and mirrors involved.

Alan

[MobileCheese]

update : defo dont go with a composite

[Wvari]

If a contract falls within IR35, and I am working through my own limited company, is the cost of using an fully inclusive accountancy service such as that offered by Nixon Williams tax deductable?

I've never contracted before and have read the guide here at the start of the thread but am starting a new contract from 3rd Jan with a company that insists on a business to business relationship and that I contract though my own limited as opposed to operate as a sole trader.

I take it that I could claim all legitimate business running costs and equipment I need such as a laptop as legitimate expenses, then claim the remainder of the monthly payment as salary and pay normal rates of NI and Income tax...

What about Corporation tax? If the expenses to legitimately run the company + my salary = 100% of the money coming into the company, I take it I pay 0 corporation tax?

[MobileCheese]

Originally Posted by Wvari

If a contract falls within IR35, and I am working through my own limited company, is the cost of using an fully inclusive accountancy service such as that offered by Nixon Williams tax deductable?

I've never contracted before and have read the guide here at the start of the thread but am starting a new contract from 3rd Jan with a company that insists on a business to business relationship and that I contract though my own limited as opposed to operate as a sole trader.

I take it that I could claim all legitimate business running costs and equipment I need such as a laptop as legitimate expenses, then claim the remainder of the monthly payment as salary and pay normal rates of NI and Income tax...

What about Corporation tax? If the expenses to legitimately run the company + my salary = 100% of the money coming into the company, I take it I pay 0 corporation tax?

[Wvari]

How exactly is asking these questions spam?

[JLeduc]

Getting tired of people blaming every second post as spam.

It's an open forum and aimed at providing contractor advice.
Being specific by naming accountancy firms is part of it and IMHO feedback about how well people get on with accountancy firms are very welcome.

Not everybody is posting 2000 times a week and frankly I expect most people are either newbies or simply interested readers rather than frequent posters. So having a low post count does not automatically mean a positive comment about a specific company is spam.

I can very well make up my own mind about whether or not I believe comments in this forum and I have no doubt most other readers are clever enough to make the such decisions for themselves as well.

Blaming people for spamming is inconsiderate, unhelpful and quite frankly rather offensive.

Personally I would like to see much more recommendations and feedback about what people like or dislike about the accountancy firms / service companies they use.

All that spam blaming does is that it makes people weary of posting positive feedback for fear of getting blamed and as such is very counterproductive.

PS: If I wanted to promote my Co here I could work up my post count quite easily by posting a bunch of spam claims to become more trustworthy.. now there is a thought!

[Wvari]

I mentioned them literally as they were in the post above me and were relevant to what I was describing.

[Sockpuppet]

Originally Posted by Wvari

I mentioned them literally as they were in the post above me and were relevant to what I was describing.

Personally I really doubt that you could claim as "legitimate" business expenses to that degree. There is no limit on them but what about things like mortgages, rent, food etc?

[Wvari]

Ok lets simplify it:

If you use any accountant to handle your tax/expenses, is the cost of doing so a legitimate tax deducatable expense? It doesnt seem unreasonable to claim this.

[freshblue]

Originally Posted by Wvari

Ok lets simplify it:

If you use any accountant to handle your tax/expenses, is the cost of doing so a legitimate tax deducatable expense? It doesnt seem unreasonable to claim this.

Yes - these are expenses of being in business.