Do I really pay less tax as a limited company

[stek]

That does sound daft, the sole trader option seems to be discounted due to some legislation.

Agencies Act 1978?

[gables]

Agencies Act 1978?

It's something like that, I shouldn't be so lazy and go a find out. Mind you when I first went contracting in 1993 sole trader was discussed with the accountant in conjunction with LTD.

[SueEllen]

Some don't like you going through Umbrella Companies either (no idea why)

Because not all companies calling themselves umbrella companies are legit.

[SlipTheJab]

Because not all companies calling themselves umbrella companies are legit.

Aah the 90% retention brollies, whats not to like

[LondonManc]

Because not all companies calling themselves umbrella companies are legit.

Fair comment. I was just thinking out loud about different options that we may all have next year - wondering if those of us that have to head to the smoke more often than not may fair better with an umbrella company for example.

[hugebrain]

I'm just thinking with all the T&S and other stuff that could kick in, can I be bothered staying ltd if it saves only one or two grand a year?

When are the t&s changes supposed to be happening? In 7 months or 19?

Anyway, with the dividend tax I think you will be around 2k worse off than you were before (not counting the utter destruction of your investments and pension). This is not the same as only saving 2k a year versus going permy and hitting the 60% tax rate + national insurance etc.

[LisaContractorUmbrella]

When are the t&s changes supposed to be happening? In 7 months or 19?

Anyway, with the dividend tax I think you will be around 2k worse off than you were before (not counting the utter destruction of your investments and pension). This is not the same as only saving 2k a year versus going permy and hitting the 60% tax rate + national insurance etc.

April 2016

[PurpleGorilla]

Going direct to client, or an agent setting up a direct client contract and taking a fee seems the obvious way to side step the T&S nonsense