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Procorre consulting

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    #31
    Originally posted by LisaContractorUmbrella View Post
    So how does it work then? What sort of rate are you on to get 83%?
    +1

    The more I think about these sort of schemes I, finally, think I've come up with a simple test to see if they are valid or not.

    The test is very simple... Could you look at your personal bank account and explain to HMRC how the money arrived there and show what tax was paid.

    As an umbrella user its straightforward. This is my bank account there is the money and here is my P60.
    For a limited company its straightforward. These are my expense payments, these are wages and these are dividend payments. There are the receipts to show the expenses, here is the p60 for my wages and here are the dividend vouchers.

    For anything else... Could you explain the above to HMRC and if not is the person who is organising the scheme going to be around to do so x years down the line..
    merely at clientco for the entertainment

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      #32
      Originally posted by wils76 View Post
      Dont worry your post can stay on the other hand do what you want with my post i couldn't care less that you accept it or not, I was responding to the orginal author of this thread which asked if any one had any experience with Procorre, which i have. I wasn't looking for a challenge or to bicker with some troll.
      I have simply stated my experience with Procorre and yes as i said earlier an effectively run Ltd company should take home 75 to 80% of your contract. I ran ltd company for 10 years with an accountant and I know hundreds of others who do and that is the norm, have a look around some accountants websites im sure there figures are around there also. In fact dont bother...
      If 20% goes in corporation tax, to get your 80% take home, you are taking 100% of what's left without any tax.

      I once had a period when I took home 100% of my income, but since I was out of contract that wasn't much of an achievement.
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        #33
        Originally posted by LisaContractorUmbrella View Post
        So how does it work then? What sort of rate are you on to get 83%?
        Well my rate differs depending on who i work for, It ranges from 400 to 600 a day. I work lots of short contracts with different companys. Its a LLP set up. As far as im aware its 83% for anyone who signs up. There are guys in my industry who earn alot more but i think the same rate applies. I think thats the best they can do and stay with in the letter of the law as i was contacted by another organisation saying i could get 90% i went back to Procorre who said that they dont know how they can offer that rate and be legal.

        You get upto 40% on a visa debit card which is classed as your expenses and are loaded onto the card, the rest goes into your personal bank account as a partnership payment and income. You also register your self as self employed and i've paid a couple of thousand on that for my first year but again Proccore pay that out of there percentage. However, i am setting up my own ltd company again and working through them so that will change slightly. Im actually looking at business bank accounts now, i was with santander for years and they were pretty much free, no monthly fees. It seems now they all want a monthly fee.

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          #34
          Originally posted by eek View Post
          +1

          The more I think about these sort of schemes I, finally, think I've come up with a simple test to see if they are valid or not.

          The test is very simple... Could you look at your personal bank account and explain to HMRC how the money arrived there and show what tax was paid.

          As an umbrella user its straightforward. This is my bank account there is the money and here is my P60.
          For a limited company its straightforward. These are my expense payments, these are wages and these are dividend payments. There are the receipts to show the expenses, here is the p60 for my wages and here are the dividend vouchers.

          For anything else... Could you explain the above to HMRC and if not is the person who is organising the scheme going to be around to do so x years down the line..
          I always receive payment request forms and you receive statements of your drawings from the LLP and i got annual one to give the accountant for my self assessment.

          Comment


            #35
            Originally posted by wils76 View Post
            Well my rate differs depending on who i work for, It ranges from 400 to 600 a day. I work lots of short contracts with different companys. Its a LLP set up. As far as im aware its 83% for anyone who signs up. There are guys in my industry who earn alot more but i think the same rate applies. I think thats the best they can do and stay with in the letter of the law as i was contacted by another organisation saying i could get 90% i went back to Procorre who said that they dont know how they can offer that rate and be legal.

            You get upto 40% on a visa debit card which is classed as your expenses and are loaded onto the card, the rest goes into your personal bank account as a partnership payment and income. You also register your self as self employed and i've paid a couple of thousand on that for my first year but again Proccore pay that out of there percentage. However, i am setting up my own ltd company again and working through them so that will change slightly. Im actually looking at business bank accounts now, i was with santander for years and they were pretty much free, no monthly fees. It seems now they all want a monthly fee.
            I don't know where to start! Firstly have a read of this https://www.gov.uk/government/upload...hipsReview.pdf . Secondly, do you spend 40% of your earnings on costs which could be classified by HMRC as expenses? If not do you not think that getting 40% of your salary tax free might be just a gnats dodgy? Thirdly, do you work with recruitment agencies? If so, unless it can be proven that you are not under the supervision, direction and control of the end client you can't work as a sole trader https://www.gov.uk/government/consul...elf-employment
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            Comment


              #36
              Originally posted by LisaContractorUmbrella View Post
              I don't know where to start! Firstly have a read of this https://www.gov.uk/government/upload...hipsReview.pdf . Secondly, do you spend 40% of your earnings on costs which could be classified by HMRC as expenses? If not do you not think that getting 40% of your salary tax free might be just a gnats dodgy? Thirdly, do you work with recruitment agencies? If so, unless it can be proven that you are not under the supervision, direction and control of the end client you can't work as a sole trader https://www.gov.uk/government/consul...elf-employment
              But apart from all this I'm sure it will be fine.
              I'm not even an atheist so much as I am an antitheist; I not only maintain that all religions are versions of the same untruth, but I hold that the influence of churches, and the effect of religious belief, is positively harmful. [Christopher Hitchens]

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                #37
                Originally posted by wils76 View Post
                You get upto 40% on a visa debit card which is classed as your expenses and are loaded onto the card, the rest goes into your personal bank account as a partnership payment and income.
                When you say "classed as expenses", do you mean "to repay the employee for all legitimately incurred valid business expenses" or "made up figure to get money out of the company without paying tax"?

                If it's the former, then it's no different from working via any employer; if it's the latter there is a huge difference which could explain how you get your 83%.
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                  #38
                  Originally posted by wils76 View Post
                  I always receive payment request forms and you receive statements of your drawings from the LLP and i got annual one to give the accountant for my self assessment.
                  Could you rewrite that into a sentence that makes vague sense. I've tried doing it 5 times and end up with at least 1 or 2 impossible (or at least utterly implausible) phrases
                  merely at clientco for the entertainment

                  Comment


                    #39
                    Originally posted by LisaContractorUmbrella View Post
                    I don't know where to start! Firstly have a read of this https://www.gov.uk/government/upload...hipsReview.pdf . Secondly, do you spend 40% of your earnings on costs which could be classified by HMRC as expenses? If not do you not think that getting 40% of your salary tax free might be just a gnats dodgy? Thirdly, do you work with recruitment agencies? If so, unless it can be proven that you are not under the supervision, direction and control of the end client you can't work as a sole trader https://www.gov.uk/government/consul...elf-employment
                    Interesting reading, the 40% i receive is 40% after the 17% is taken off so it not 40% of my total earnings. I don't work for agencies I subcontract directly to service companies. I dont work as a sole trader i will now be ltd again just going through Procorre. Im quite content that they are performing legally and within the law. If they continue as they have over the past year im happy. Like i said i don't really earn more than i did with my ltd company i just have less hassle and now im back as ltd i will be able to get back on the VAT flat rate scheme although quite few companies are not paying it.

                    Comment


                      #40
                      Originally posted by wils76 View Post
                      You also register your self as self employed
                      Originally posted by wils76 View Post
                      I dont work as a sole trader
                      So what work do you do that is declared as being self employed if you aren't a sole trader?
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