couple pointers before i jump the good ship Perm?

**max** · 20 September 2007, 07:56

Originally posted by mailric View Post

great forums, learned lots. going to leave my perm role in Oct

for contracting, business analysis and project management work.

Couple of questions i have though which i could do with your advice on...

1. I currently rent a house which is classed as a rental business for inland revenue purposes and i just pay income tax on the profits.
when i set my Ltd company up - whats the best way to work this? keep it seperate or lump it in with my ltd company? Any impact on tax/IR35?

Keep seperate

Originally posted by mailric View Post

2. Assuming your advice to 1 is keep them seperate, can my ltd company invoice my rental business for works say done? (e.g decorating). Again, any benefits? tax/IR35?

Don't understand...you're LTD is going to offer decorating services?

Originally posted by mailric View Post

3. anyone recomend a good accountant in the north west, manchester area? whats the going rate in this neck of the woods (70quid a month seems to be mentioned a few times although someone else said this was low)?

Location is not important. Understanding your business (ie: contracting) is important. I've never needed to meet my accountant. SJD/Nixon seem to keep people happy.

Originally posted by mailric View Post

4. if sometimes your contract is classed as inside IR35 but your next is outside, what happens?

You pay tax based on each individual contracts. Each one is considered seperately.

**MrRobin** · 20 September 2007, 08:32

Good advice, Max.

For 3, Nixon Williams, who are often praised on this board, are based in Chorley... Isn't that near Mancs?

<MrRobin in I'm-a-Southerner-I-don't-know-where-anything-is-north-of-the-thames mode>

**VectraMan** · 20 September 2007, 08:37

Keep everything seperate, but your second income may affect the way you want to pay salary/dividends from your Ltd. Ask your accountant.

**TheFaQQer** · 20 September 2007, 08:38

1 - keep it separate.

2 - eh? If you are running a decorating business, and do the work, then yes. If not, then no.

3 - Cassons are good, but not the cheapest. I think SJD may well have a northern office. Be prepared for a string of responses to the post asking why you feel this is important, though.

4 - Pay more tax on the first, and less on the next.

**Nixon Williams** · 20 September 2007, 09:48

If you wanted to place the property within the company, you would have to "sell" it to the company, so probably not a wise thing to do.

If the asset is not owned by the company, no costs associated with it would be paid by the company.

Having contracts that are caught or not is not an issue, the tax treatments are different, your accountant will be able to handle this for you.

Alan

**mailric** · 20 September 2007, 10:48

Thanks people!

Thanks for the replies....

1. point taken, keep seperate seems to be the way foward.

2. when i read this again it didnt make much sense to me either! what i was trying to achieve is..

someone mentioned that you are outside of IR35 if your company does something other than just one thing (like contracting). So i thought if i put the odd bill in for something else (e.g. decorating my rented house) then it would help.

that make more sense?

3. yep, Chorley is 15 mins from me - excellent call Mr Robin

4. understand better now. something for the accountant to sort out I think!

PS: that too many smilies?

**RightLaugh** · 20 September 2007, 11:12

Originally posted by Nixon Williams View Post

If you wanted to place the property within the company, you would have to "sell" it to the company, so probably not a wise thing to do.

If the asset is not owned by the company, no costs associated with it would be paid by the company.

Having contracts that are caught or not is not an issue, the tax treatments are different, your accountant will be able to handle this for you.

Alan

sold to NW. SJD you're to slow today. Simon must be on the gold course again.

**TheFaQQer** · 20 September 2007, 11:53

Originally posted by RightLaugh View Post

sold to NW. SJD you're to slow today. Simon must be on the gold course again.

Things must be doing well if he's on a gold course!

**chef** · 20 September 2007, 13:00

Agree with Nixon Williams advice on contracts inside/outside IR35, its solely the way tax is handled and your accountant will sort that out..

I'm based in Manchester and with SJD who are located on King Street, no complaints with them so far..

oh and good luck

Chef

couple pointers before i jump the good ship Perm?