Which way to go recommendations

[co_sjo]

Hi all.. This is my first post so please be nice

Okay, basically I moved into contracting about 2 years ago. I'm currently using Giant Strongbox Ltd and, to be honest, have had no problems with them at all. I think my total deductions via this scheme is around 35%. This seems like a lot, compared to what i've been reading, so i'm potentially looking at alternatives.

I recently contacted a managed ltd company services company, which promise me about 18-19% total deductions. This obviously looks fantastic, but I do not want to implicate myself in any way that will cause any grief with HMRC in the future. I do not appreciate large tax 'adjustments'!

I don't really claim any expenses, however I do claim travel (daily travelcard) and 10+hr subsistence.

Now, I do like the easy life. This other offering seems excellent, on a purely logistical and income perspective, however it appears that this business practise is a little under-hand and may attract the attention of HMRC. It is not a composite company, however.

I guess my question to you folks is based on what I do (6 month IT contracts, no expenses, basic subsistence/travel arrangement {is this only for IR35?}).. what do you think the best way forward for me is? If going this other route nets me £300 more a week then it's probably going to take the threat of future trouble to put me off!

I've read through some of the newb guides on the site, but not sure my question has been totally answered. Any other pointers gladly appreciated.


Many thanks,

[MrsGoof]

Get yerself an accountant and a Limited Company.

[Nixon Williams]

You have not provided enough details to give you a clearer answer, however I would guess that you would be better off with your own limited company, certainly if you are exempt from IR35.

I can be pretty certain that an oufit that claims only 18% deductions is trting something on, ask them for a written guarantee that they will pick up any extra tax if the Revenue poke their nose in your affairs, I am sure you will not hear from them again!

Alan