Going direct for four weeks

[Clare@InTouch]

Self-employed, no question. If there was no Agencies Act I think the whole contracting world would go sole-trader.

You also have the issue with sole traders that all income is taxed straight away. A limited company may suffer CT, but it allows you to drip feed any personal income over more than one tax year (or store it up to take a capital gain upon closure).

[stek]

You also have the issue with sole traders that all income is taxed straight away. A limited company may suffer CT, but it allows you to drip feed any personal income over more than one tax year (or store it up to take a capital gain upon closure).

U sure? I thought it was 9 months after year end...?

Also u can offset previous years tax against a s/e new start, or you could, things have prolly changed...

[Clare@InTouch]

U sure? I thought it was 9 months after year end...?

Also u can offset previous years tax against a s/e new start, or you could, things have prolly changed...

??

I wasn't implying any due date for CT, just that it would apply to a limited company in general.

The point is that you can delay any personal tax implications if you're limited, whereas if you earn £150k as a sole trader it will be taxed in the year you earn it. Bingo, 50% please. A lot higher than the potential 10% if you wait, keep it in the company and take a capital gain (even taking into account the c20% CT along the way).

You can offset personal tax losses if you're self employed, but unless the losses are massive it would be hard to outweigh the tax benefits of limited.

[ASB]

Whilst I concur, I would hope this sort or S/E would fall under the same sort of cards in (or is it out?) the building industry uses; short/medium term projects, one project at a time.

I dunno tho - long time since I was ltd or s/e, I went llp last time and still paying the price....

Well, you might want to look up "CIS" - the Construction Industry Scheme.

HM Revenue & Customs: Construction Industry Scheme

Don;t know much about it's current incarnation since it was extensively revised about 3 years ago, but I know a lot of people who were somewhat scathing of it )some justly some less so!). The original intention was to avoid a lot of alleged evasion in the building game with people "on the tools". Oddly enough it seems to have resulted in few subbies being S/E anymore as far as I can work out.....