brolly to limited setup-my case

[LisaContractorUmbrella]

And what is the risk of investigation and will you PCG membership or QDOS insurance save you if you are investigated.

So do you think it's ok to work outside IR35 when you know you're not and just rely on insurance? [remember Big Brother is watching you]

[LisaContractorUmbrella]

Well that's really not right is it Lisa? You're picking on one area of the BET that most, if not all, IT contractors will fail in practice, although probably not in contract. Supervision and MOO, as you also mentioned, are much bigger indicators of disguised employment in my opinion not only are you much more likely to presented with these scenarios they're also much easier to measure, i.e. do you have a line manager you report into and are answerable to, even for non-project related issues? Are you referred to as a contractor on HR documentation? Are you told how to complete your tasks rather than working to your own methods? Do you have to request time off or do you inform the client out of curtosey?

The questions above aren't exhaustive nor definitive when it comes to IR35, but they give you an indication of whether or not it's worth potentially paying for a contract/working practices review to determine your status. For example, if you have to attend normal team meetings and performance reviews with a line manager at a client co, don't even bother with the IR35 review.

If you're confident your working practices fall outside of being a disguised employee, get a review that backs that up, purchase PCG membership and get rid of the brolly. You're throwing money away

Actually I am picking on the three things that are the fundamental considerations of the original legislation - nothing to do with the BET's. Yes, I agree that working practices have to be representative of what's contained within the contract

[aoxomoxoa]

So do you think it's ok to work inside IR35 and claim you're not when you know you're really inside and just rely on insurance? [remember Big Brother is watching you]

FTFY

[Sausage Surprise]

I have been with a brolly for a while now, but I am now considering a limited company setup because of the supposed higher take-home. However, I mostly want to withdraw the entire funds at the end of the month to pay a mortgage. Considering the complicated(to me) nature of salary+dividend way of withdrawl from a limited company, will it be really worth the trouble? Will my eventual take home be still more than a brolly if I intend to withdraw the entire funds and get taxed for that?

No supposed about it.

[Arnie365]

I have been with a brolly for a while now, but I am now considering a limited company setup because of the supposed higher take-home. However, I mostly want to withdraw the entire funds at the end of the month to pay a mortgage. Considering the complicated(to me) nature of salary+dividend way of withdrawl from a limited company, will it be really worth the trouble? Will my eventual take home be still more than a brolly if I intend to withdraw the entire funds and get taxed for that?

Ok, so I have decided to go limited, and setting up a business bank account shortly. Now, I have read this somewhere
If you are a director and shareholder of your company the most tax efficient mix for 2013/14 is:

Annual salary of £7,696

Dividends of £30,379.This will give you an annual income of £38,075 without any tax or national insurance being incurred by the employer or employee.

Question1:Will my accountant work out the paper work(payslip,dividend papers etc.) to get the above paid to me?
Question2: How do I transfer this amount from my business account to my personal bank account for daily expenses, mortgage payment etc.?

[northernladuk]

Ok, so I have decided to go limited, and setting up a business bank account shortly. Now, I have read this somewhere
If you are a director and shareholder of your company the most tax efficient mix for 2013/14 is:

Annual salary of £7,696

Dividends of £30,379.This will give you an annual income of £38,075 without any tax or national insurance being incurred by the employer or employee.

Question1:Will my accountant work out the paper work(payslip,dividend papers etc.) to get the above paid to me?
Question2: How do I transfer this amount from my business account to my personal bank account for daily expenses, mortgage payment etc.?

Answer 1 : Speak to your accountant. They work differently so sit down with him and understand how they operate.
Answer 2 : You transfer it from your business account to your personal like you would any other bank transfer. It has to match the agreed divi and the wage will have to be as detailed in your RTI which you would agree with your accountant. Direct debit would probably best to make sure they are on time.

Would be a good idea if you read the newbie guides to the right and have a good sit down with your accountant before you get too overwhelmed.

[LisaContractorUmbrella]

Ok, so I have decided to go limited, and setting up a business bank account shortly. Now, I have read this somewhere
If you are a director and shareholder of your company the most tax efficient mix for 2013/14 is:

Annual salary of £7,696

Dividends of £30,379.This will give you an annual income of £38,075 without any tax or national insurance being incurred by the employer or employee.

Question1:Will my accountant work out the paper work(payslip,dividend papers etc.) to get the above paid to me?
Question2: How do I transfer this amount from my business account to my personal bank account for daily expenses, mortgage payment etc.?

How much do you understand about IR35?

[Old Greg]

So do you think it's ok to work outside IR35 when you know you're not and just rely on insurance? [remember Big Brother is watching you]

No, but many of us operate in grey areas.

[VectraMan]

Dividends of £30,379.This will give you an annual income of £38,075 without any tax or national insurance being incurred by the employer or employee.[/I]

Don't forget the corporation tax.

[Craig at Nixon Williams]

Now, I have read this somewhere
If you are a director and shareholder of your company the most tax efficient mix for 2013/14 is:

Annual salary of £7,696

Dividends of £30,379.This will give you an annual income of £38,075 without any tax or national insurance being incurred by the employer or employee.

The statement about not incurring any tax on this assumes that you have had no other income in the tax year. If you were with an umbrella company beforehand then you will need to factor in this income.

Craig