Originally posted by Worcsman
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Ltd Co, umbrella, PAYE, Sole trader.... Whats the correct course?
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Originally posted by jmo21 View PostI can understand newbies who've never heard of EBT's and the like to come on here and annoy NLUK by not doing a search, but someone who has been contracting for 20 years, and HAS heard of the schemes, to come on wondering about it?Comment
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Originally posted by Worcsman View PostIm not kicking for the other side. Ive never heard of using a trust fund. Always in the uk used a straight forward ltd companyComment
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Originally posted by Martin at NixonWilliams View PostWhy would you consider this in the OP's circumstances? The contract is one on a 6 months rolling basis. Aside from the occasional 2/3 month contract I am yet to see a contractor with turnover that low.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by jmo21 View PostWire in then, but keep the savings back and invest it in Vaseline for when hector comes sniffing.Comment
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Originally posted by jamesbrown View PostAs have dodgy accountants.
Originally posted by jamesbrown View PostHaving another link in the chain creates an additional risk, but it's manageable if you opt for a reputable umbrellaComment
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Originally posted by Worcsman View PostIm not kicking for the other side. Ive never heard of using a trust fund. Always in the uk used a straight forward ltd company
People often think that if HMRC come a'knocking, punters will just hold up their hand and say "it's a fair cop Gov!" and hand over the 15%* tax they think they owe (from the Gross/total amount of the contract).
So from a contract total of £100,000 (100%), you think that you might to have stump up £15,000 (15%)
HMRC are looking at it from a VERY different perspective. They think of the money in your pocket as NET (like PAYE, after tax and NI has been taken out), so they will probably calculate your tax as 40% (your figure is 60%) and add that to get a back calculated figure.
So from a contract total of £100,000 (60%), HMRC think that you will to have stump up the missing 40% = £66,666.
The number of the beast with knobs on, if you like....
*If the punter is dumb enough to think that the 15% giving them their 85% take home pay goes to the taxman"I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...Comment
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Originally posted by Martin at NixonWilliams View PostAccountants or MSC's?
Originally posted by Martin at NixonWilliams View PostNot necessarily, for example JSA are a reputable company and found themselves in administration.Comment
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Originally posted by cojak View PostWell, whatever you decide, just consider this little gem:
People often think that if HMRC come a'knocking, punters will just hold up their hand and say "it's a fair cop Gov!" and hand over the 15%* tax they think they owe (from the Gross/total amount of the contract).
So from a contract total of £100,000 (100%), you think that you might to have stump up £15,000 (15%)
HMRC are looking at it from a VERY different perspective. They think of the money in your pocket as NET (like PAYE, after tax an NI has been taken out), so they will probably calculate your tax as 40% (your figure is 60%) and adding that to get a back calculated figure.
So from a contract total of £100,000 (60%), HMRC think that you will to have stump up the missing 40% = £66,666.
The number of the beast with knobs on, if you like....
*If the punter is dumb enough to think that 15% of their 85% take home pay goes to the taxmanComment
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