I'm done with using a limited.

[curtis]

I've been contracting 6 years & worked through an umbrella for that time, several times I have considered a Ltd but have always stayed Umbrella.

For me the extra work of running a Ltd and I mean work mentally and paperwork wise, wondering whether I am in/out of IR35, is hector going to knock, contract checks etc etc I just decide every time to stay as I am.

Yes I may lose out money wise a bit but the fact I can just get on and think about things I would prefer to be thinking about and doing not have work yet more on my mind suits me fine as a trade off.

[LucidDementia]

holy cr@p

I just ran it through the ST calculator. I would be 2k a year better off
and that's playing it straight

Do remember though if something goes nipples-skyward and your insurance isn't in place you could lose literally everything you own. Your balls are in play.

Personally sole trading is what I consider true business. Limited liability is a fairytale world we all live in I'm afraid.

[scooterscot]

Oh I fancy a directors loan. What you can only help yourself to 5K?!

I take as much out the bank as I want. I recall taking out €34k over till, no issues. Put it back in a couple of weeks later after the borrowing was done.

[MrMarkyMark]

I recall taking out €34k over till, no issues. Put it back in a couple of weeks later after the borrowing was done.

Drug deal, done good then

[EternalOptimist]

would I still be allowed to post on here ? i'll promise to stop doing global warming stuff, and stick to the jokes

[scooterscot]

Drug deal, done good then

You'd be surprised what you can put in an envelope.

[MrMarkyMark]

You'd be surprised what you can put in an envelope.

I thought it was the sole purpose of €500 notes, unless you are a rap star.

[MPwannadecentincome]

Then if I understand all this correctly, and my numbers are right

the amount you lose on dividend tax vs the amount you lose on employers NIC is about the same.

so in cash terms, it's a wash. roughly

but if you go brolly, you can be corralled, identified and mass-f*cked
but if you stay ltd, you might get forced to be an employee, soonish


nice.
very nice

There is also the timing factor.

Umbrella - your have to take all fee income out as PAYE you can't "leave it in" the Umbrella.
With Ltd Co you can take some out now and the rest at another time, thus defer some higher rate tax to another day or not pay higher rate at all if you have a long enough bench period. Also can use salary sacrifice to put some into a pension (can you do that with an umbrella?).

Depends on your lifestyle and rate of course, for me I don't need to withdraw everything (motivation is missing with child maintenance as %age of income being like an additional tax for me!).

[woohoo]

There is also the timing factor.

Umbrella - your have to take all fee income out as PAYE you can't "leave it in" the Umbrella.
With Ltd Co you can take some out now and the rest at another time, thus defer some higher rate tax to another day or not pay higher rate at all if you have a long enough bench period. Also can use salary sacrifice to put some into a pension (can you do that with an umbrella?).

Depends on your lifestyle and rate of course, for me I don't need to withdraw everything (motivation is missing with child maintenance as %age of income being like an additional tax for me!).

Do you pay yourself min salary and your child payments are based on that?

[wantacontract]

I run a limited company for the last 10 years, and found it not that onerous.....

I pay myself around 12k in salary and take dividends, I am very risk averse on expenses....not taken the piss with travel/accomodation at all...bought the odd laptop and pc....5 years ago!

i am going to buy myself a decent laptop this business year....with expenses though....