Originally posted by monkeygeorge
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Need some advice on Composite companies please
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Hexagon / Lyncott
Hi folks,
I read this with interest. I use the above company and get paid a small salary which I pay tax and NI on and then pay 19% corporation tax on the balance of my monthly earnings.
Whilst I have been contracting on and off for a while I have never really got the bottom of what I should and shouldn't do.
Is the above correct or do I fall into the same category i.e. I should be paying additional tax (above 19%) on the balance of my earnings?
I have spent a lot of time moving back and forth between the UK and Spain, where I lived for 4 years and until this contract wasn't particularly worried (from a tax perspective) as I didn't ever work long term in the UK.
However, having been on this contract for the time I have and reading this post it has made me wonder?
Apologies if this sounds naive but you have to start somewhere.
Thanks,
KarenComment
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HR Tax
Originally posted by KLMHi folks,
I read this with interest. I use the above company and get paid a small salary which I pay tax and NI on and then pay 19% corporation tax on the balance of my monthly earnings.
Whilst I have been contracting on and off for a while I have never really got the bottom of what I should and shouldn't do.
Is the above correct or do I fall into the same category i.e. I should be paying additional tax (above 19%) on the balance of my earnings?
I have spent a lot of time moving back and forth between the UK and Spain, where I lived for 4 years and until this contract wasn't particularly worried (from a tax perspective) as I didn't ever work long term in the UK.
However, having been on this contract for the time I have and reading this post it has made me wonder?
Apologies if this sounds naive but you have to start somewhere.
Thanks,
KarenComment
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Thanks for that - so if I go over 40% then I need to make additional tax payments? Do you know how that is calculated i.e. between 19% corporation tax nett amount and the actual amount I get paid? I assume I only pay any additional amount of tax on the amount over and above the threshold?
I think I've confused myself!!!
KComment
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taxes
I think you need to speak to Safe Solutions or dig out the dividend vouchers and a P60 to see how much you've received.Comment
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Oh I dont use Safe Solutions which appears to be a good thing from the earlier comment. I use a company called Hexagon / Lyncott? Thanks for the advice I will ask them.
Best Regards,
KarenComment
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