New contractor needs advice on best scheme

[ITGirl1985]

Hello,

I've been offered a job at £450 a day 4 weeks holiday so around 17 days per month on average I'd invoice for. I have had a few quotes through different scheemes and think I'm going to go with Tandem stratagies who say after all my fees and all costs I wil have £6680 in my bank at the end fo the month. Has anyone used this company before or can anyone suggest anyone else I could try to get a comparrison?

Appreciate any help! Thanks in advance.

[cojak]

Have a look here:

http://forums.contractoruk.com/accou...trategies.html

This company's parent organisation is Brightstreams Ventures Ltd, which was Incorporated in 2009. Which means that they probably began trading in the 2009/2010 financial year.

If you take a look at this forum HMRC Scheme Enquiries you will see that HMRC are processing schemes for 2008/2009. There are a lot of unhappy fish in that pond.

Just wait until the letters for 2009/2010 start turning up on people's doorsteps., then you'll know whether HMRC agree with the website or not.

Ask for WRITTEN PROOF that HMRC recognises them as NOT a tax avoidance scheme. Keep that proof safe.

[Craig at Nixon Williams]

If I was in your position, I would be questioning exactly how you retain such a large proportion of the income - their website says they offer two solutions being Umbrella and Ltd company. Have you seen how they have calculated their figures and worked it back?

Irrespective of which accountancy firm or umbrella you choose to work through, you are still required to abide by the same tax legislation and therefore take-home pay should not vary too much..

Hope this helps!
Craig

[northernladuk]

Hello,

I've been offered a job at £450 a day 4 weeks holiday so around 17 days per month on average I'd invoice for. I have had a few quotes through different scheemes and think I'm going to go with Tandem stratagies who say after all my fees and all costs I wil have £6680 in my bank at the end fo the month. Has anyone used this company before or can anyone suggest anyone else I could try to get a comparrison?

Appreciate any help! Thanks in advance.

Contractors don't have jobs!! My seem like a pedantic point but the faster you get your head around your situation the lot easier it will be for you in the short and long term.

[malvolio]

I think someone needs to do a lot of reading before they get into trouble. The question demonstrates a terrifying level of naivety...

But hey, when do we stop people being stupid enough to believe in miracle cures...

[LisaContractorUmbrella]

Firstly and secondly, how can a scheme which is recognised by HMRC as not being tax avoidance have been tested in court 3 times??? If HMRC 'approved' it why would they test it? GAAR which came in yesterday/today should sort this lot out

[jamesbrown]

It's hard to keep a reply to this professional

But, please do some reading before you end up in one of the various Sticky's on "schemes".

[cojak]

I can always rely on our regulars to associate any questions like this with proper warnings of due diligence!

(FYI: We also laugh at 1st time posters bigging up these schemes, just in case anyone is thinking of replying... )

[ITGirl1985]

wow..ok! I am nieve yes as i say I have never contracted before so totally new to all this. Could someone advise the best legal way of working please? I dont want to break any rules! (but would like to keep as much of my income as possible obiovusly)! haha


thanks in advance


a very new newbie

[LisaContractorUmbrella]

wow..ok! I am nieve yes as i say I have never contracted before so totally new to all this. Could someone advise the best legal way of working please? I dont want to break any rules! (but would like to keep as much of my income as possible obiovusly)! haha


thanks in advance


a very new newbie

If you work through an umbrella company or your working practices put you inside IR35 (loads of info on site) your income will be subject to PAYE taxes - income tax bands 20-45%, employee's NI 12.8% (employers NI 13.8%) so promises of take home pay of 80%+ don't stack up. You can set up your own Ltd Co and, if you are outside IR35, you can draw dividends from the company which don't attract NI contributions but you will still be liable for income tax at 40% if your earnings exceed the higher rate and you will be liable for corporation tax.

There are some guides on here about working Ltd or umbrella and there are several very, very, very long threads about people who thought tax avoidance was a good idea

HTH