One Ltd Co with 3 Directors all on different contracts??

[Pickle2]

Wont this also push you out of the small company band for CT tax calcs?

[Sockpuppet]

If you all have a similar skill set then you may be able to substitute each other. This will guarantee you remain outside IR35 (for that contract).

No, no it won't. It will help towards that, it won't guarantee it.

[Sockpuppet]

Wont this also push you out of the small company band for CT tax calcs?

I thought that was 1.5million?

[Hex]

I thought that was 1.5million?

Up to 300,000 is 20%,
300,001 to 1,500,000 is between 20% and 30%,
Over 1,500,000 is 30%

For this tax year ending 31/03/2008

[Fred Bloggs]

Regarding MSC legislation, my thoughts are - "If walks, quacks and looks like a Duck....." then it is in fact a Duck.

I see no substantive difference between this proposal and the offerings that were outlawed by the likes of Brookson, Filetravel, Paycheck etc.... What would the difference be between thois arrangement and the previously doomed "composite company"?

[NickNick]

Regarding MSC legislation, my thoughts are - "If walks, quacks and looks like a Duck....." then it is in fact a Duck.

I see no substantive difference between this proposal and the offerings that were outlawed by the likes of Brookson, Filetravel, Paycheck etc.... What would the difference be between thois arrangement and the previously doomed "composite company"?

Surely (to my eyes) it would be the starting of a small consultancy firm, rather than an accountancy one?

[Fred Bloggs]

Surely (to my eyes) it would be the starting of a small consultancy firm, rather than an accountancy one?

I don't totally disagree, I suppose the key would be to show that the consultancy employed people and had a real office where people worke and answered phones, worked on fixed price quotations etc... I get the impression (but could well be wrong) that the OP is looking for a "guaranteed way round IR35" etc.. issues rather than start up a pukka multi-consultancy business? Apologies if I'm wrong on that.

[JudoStu]

I don't totally disagree, I suppose the key would be to show that the consultancy employed people and had a real office where people worke and answered phones, worked on fixed price quotations etc... I get the impression (but could well be wrong) that the OP is looking for a "guaranteed way round IR35" etc.. issues rather than start up a pukka multi-consultancy business? Apologies if I'm wrong on that.

We are indeed looking to start this business as a way of doing consultancy full-time rather than contracting, however there will inevitably be a period of generating business (say 12-24 months). This is why I was interested in peoples thoughts on the IR35 side of things with operating a company like this whilst we are still all contracting.

[Hex]

I reckon with all directors getting different classes of share and being paid divs proportional to the income they individually bring in then this would not be considered a consultancy business in its own right but a vehicle set up to avoid tax. This, in itself, may not be a problem, but I think it is sailing very close to the MSC wind. Who will have responsibility for the company bank account? Would any of the three directors trust the others with this? Would the accountant be able to access it?

[JudoStu]

I reckon with all directors getting different classes of share and being paid divs proportional to the income they individually bring in then this would not be considered a consultancy business in its own right but a vehicle set up to avoid tax. This, in itself, may not be a problem, but I think it is sailing very close to the MSC wind. Who will have responsibility for the company bank account? Would any of the three directors trust the others with this? Would the accountant be able to access it?

Whilst I do trust (to a point) my friends (and I'm sure they would think the same) none of us would have sole control over the account, we would all be joint signatory on it. The accountant would get to see the bank statements but would not have control over the account, she would just advise us what is available as a dividend for each of us to take.