Hi all. 
I am new to the forum, but looking for some advice.
In light of the budget announcement that the chancellor that he intended to tackle "disguised employmnet" through use of service companies etc..etc.., my service company, who I have used for the 3.5 years i have been contracting have made an announcement.
Currently the arrangement is what i would call a typical composite company one, whereby I am an employee/ shareholder, get minimum wage/ hour and the remainder paid in dividends.
The service company have announced that they intend to arrange all its contractors into individual single person limited companies, of which i would become a director. They reckon that it will be harder for the taxman to challenge single person limited companies than composites.
What does everyone think of this? Does it expose me to a greater risk if I am a director than an employee? Should I go with it. Or should i set up on my own as a limted company? Or perhaps use an umbrella company.
And what does everyone think about the news about Gabem losing their CIS5 certificate whereby they may have lost the right to be paid gross of tax, which will make them much less viable. Gabem are a company who manage single person limited companies- will any decison about them equally apply to composite companies?
I am new to the forum, but looking for some advice.
In light of the budget announcement that the chancellor that he intended to tackle "disguised employmnet" through use of service companies etc..etc.., my service company, who I have used for the 3.5 years i have been contracting have made an announcement.
Currently the arrangement is what i would call a typical composite company one, whereby I am an employee/ shareholder, get minimum wage/ hour and the remainder paid in dividends.
The service company have announced that they intend to arrange all its contractors into individual single person limited companies, of which i would become a director. They reckon that it will be harder for the taxman to challenge single person limited companies than composites.
What does everyone think of this? Does it expose me to a greater risk if I am a director than an employee? Should I go with it. Or should i set up on my own as a limted company? Or perhaps use an umbrella company.
And what does everyone think about the news about Gabem losing their CIS5 certificate whereby they may have lost the right to be paid gross of tax, which will make them much less viable. Gabem are a company who manage single person limited companies- will any decison about them equally apply to composite companies?
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