Hi all
I am new to contracting and searching for brolly company. Found one that offer around 60% of income i can actually take home and with 130£ fees. But there is one other that is using loan element which allows me take home 80% of income. Pls see below. Just wonder if this is legal to do it this way as this sounds extremely attractive with the returns. And if this is no good. Any other good ones recommend? And wat items am i liable to claim my expenses, ie accomodation.. Please advice.
Regards
Nancy
"Bromley Management Services circumvents the whole issue of IR35 as you would be 'employed' ...versus the Self Employment option where you would have to comply with IR35 etc. You would be employed by us on a commercial salary and given a discretionary (TAX FREE) loan (not the typical dividend payment given by composite companies where 19% corporation tax applies). You simply pay a 5% management fee that includes any interest charges for the loan.
How Bromley Support Services works
Part of your income is fully taxed. A base salary is agreed upfront before you start. The rest of your income (loan element) is tax free. We secure the validity of the loan in several ways; you pay 1% above the Bank of England base rate, you’re given an official loan offer and you’re issued monthly loan statements. The loan offer is typically fixed in £25k increments which are drawn against every time you are paid. When the total of loan payments nears to £25k, a new loan offer is issued. Even though the interest rate is currently at 6.25% (1% above base), we actually offset this within our 5% management fees...so you only pay 5% across the board. We have no set up or cancellation fees, and there are no binding contracts in respect of how long ! you use us.
You wouldn't need to bother about offsetting your expenses as most of your salary is tax free to start with. The other advantage with Bromley Support Services is that we sort out all your tax and NI for you up front, so you won't get any surprise tax bills later on. If asked to file your taxes by the Revenue, you would simply declare earnings on the low base salary, also featured on the P60 we issue each year. "
I am new to contracting and searching for brolly company. Found one that offer around 60% of income i can actually take home and with 130£ fees. But there is one other that is using loan element which allows me take home 80% of income. Pls see below. Just wonder if this is legal to do it this way as this sounds extremely attractive with the returns. And if this is no good. Any other good ones recommend? And wat items am i liable to claim my expenses, ie accomodation.. Please advice.
Regards
Nancy
"Bromley Management Services circumvents the whole issue of IR35 as you would be 'employed' ...versus the Self Employment option where you would have to comply with IR35 etc. You would be employed by us on a commercial salary and given a discretionary (TAX FREE) loan (not the typical dividend payment given by composite companies where 19% corporation tax applies). You simply pay a 5% management fee that includes any interest charges for the loan.
How Bromley Support Services works
Part of your income is fully taxed. A base salary is agreed upfront before you start. The rest of your income (loan element) is tax free. We secure the validity of the loan in several ways; you pay 1% above the Bank of England base rate, you’re given an official loan offer and you’re issued monthly loan statements. The loan offer is typically fixed in £25k increments which are drawn against every time you are paid. When the total of loan payments nears to £25k, a new loan offer is issued. Even though the interest rate is currently at 6.25% (1% above base), we actually offset this within our 5% management fees...so you only pay 5% across the board. We have no set up or cancellation fees, and there are no binding contracts in respect of how long ! you use us.
You wouldn't need to bother about offsetting your expenses as most of your salary is tax free to start with. The other advantage with Bromley Support Services is that we sort out all your tax and NI for you up front, so you won't get any surprise tax bills later on. If asked to file your taxes by the Revenue, you would simply declare earnings on the low base salary, also featured on the P60 we issue each year. "
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