Need some advice on Composite companies please

[Technically Blonde]

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

I would strongly suggest that anyone thinking of going with Safe Solutions check their scheme with the Revenue first

[KLM]

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,
Karen

[Darren@UptonAccountants]

HR Tax

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,
Karen

If you're a basic rate tax payer, there's no further tax to pay...if your income including salary, divi's, etc goes into the higher rate then yes, you should be paying additional tax on your earnings.

[KLM]

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!!!

K

[Darren@UptonAccountants]

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.

[KLM]

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,
Karen