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Need some advice on Composite companies please

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    Need some advice on Composite companies please

    I first worked last year as a contractor using a composite company called PCL I was advised to use them by a work collegue at the time, everything was good about it, money etc. I was payed in a small salary & the rest in dividends.

    Now, I have just started a new contract with a new client & PCL won't let me rejoin as they say their solicitors won't allow them to employ me as now work outside the Aircraft Industry, which is fair enough. So, the problem I have now is trying to find a new composite company to pay me in the same way as before, I have looked and tried all the various calculators on the umbrella companies websites, such as properity4, Parasol etc, but these all seem to operate using a PAYE salary system with no dividends, which seems a lot less take home money than I used to take home with the dividend system.

    Does anybody know of any good composite companies I could try ?, Also do the Umbrella companies such as Parasol operate a composite company if you fall outside of IR35 ?, would really appreciate some advice.

    Thanks

    Chris8o

    #2
    There's a thought...

    Use an umbrella and be outside IR35...

    It's your call, but look at using a Ltd Co - it's really not that difficult and actually pays a bit more than anything else, because you get to work with all the money rather than giving a percentage to someone else.

    If you're hell-bent on using a composite, it's probably best to keep away from anyone with a number in their name - common opinion around here is to talk nicely to Parasol, who provide both composite and umbrella options but there are others.

    It might be a good idea to do some research on how it all works, which might save you getting stung! And the other small point is that Hector seems more and more to be targetting people who take the low salary/high dividend route for special attention - and you really do not want to get in front of an IR35 investigation, even if you're well outside the boundary!

    Comment


      #3
      Re: There's a thought...

      Thanks malvolio & appreciate the helpfull advice.

      I have just been talking with Brookson, who are recommended on here in the directory list, they seem really professional & are giving me 83% of my gross, but I fully take on board what you say about the investigations.

      Comment


        #4
        Re: There's a thought...

        remember that Hector will want his cut of those Divis at the end of the year

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          #5
          Re: There's a thought...

          No he wont. I now someone who has now been 5 years with a composite and has never had to pay tax on the divs.

          Comment


            #6
            Parasol Composite

            Originally posted by malvolio

            If you're hell-bent on using a composite, it's probably best to keep away from anyone with a number in their name - common opinion around here is to talk nicely to Parasol, who provide both composite and umbrella options but there are others.
            Hi - I've signed up with Parasol (First contract) but I see no mention of a composite solution on there website ? Just wondering if anyone has any first hand experience of Parasols composite solution ?

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              #7
              Umbrellas

              Unless Parasol have just launched a composite scheme they just operate a PAYE umbrella. There are a few who do composite although for some reason the majority operate in non IT sectors. Brookson in engineering, Gabem in construction and as previously mentioned PCL in aircraft. There are some specialist IT firms who operate it but they seem to backing away on this at the moment and I'm not sure why. No doubt it will be one of 2 factors: they aren't making any money on it OR the IR is sqeezing them.

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                #8
                Safe Solutions

                I've been with Safe Solutions for a few weeks, everything's OK so far, despite them going into administration a couple of weeks ago!

                George
                my photos

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                  #9
                  Originally posted by Underscore
                  No he wont. I now someone who has now been 5 years with a composite and has never had to pay tax on the divs.
                  Strangely enough he doesn't ever ask for them until he feels like it, it is yours and in this case your mates job to disclose these. I suggest he does as they have a habit of knocking on the last day they can legally investigate and asking for a lot of money very quickly.

                  It's because of tw@ts like that that the whole IR35 rubbish originally got spawned.

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                    #10
                    Originally posted by Underscore
                    No he wont. I now someone who has now been 5 years with a composite and has never had to pay tax on the divs.
                    must only be a basic rate taxpayer then. As soon as you earn more than the basic rate band limit (including the grossed up divis) you have to pay tax on the divis
                    TB
                    Let's go to Italy

                    Comment

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