IndyRef2 : This time it's war!

[TestMangler]

I should have worded it with additional "...if you want to get any contract signed."

Up until 2018 you had sod all chance of getting an agency to agree to have a Scottish Ltd Company provide PSC equivalent services. I know two people who had to set up English Ltd Companies instead. Agents being quick to ask if I had a Scottish Ltd Company and that they hoped not, prior to contractor friends having issues, suggested it wasn't a good idea.

As a guess, I expect many end clients were based in England and even Scottish agencies having formed English Ltd Companies resulting in domains being rightly or wrongly limited to England only.

I contracted from 1994-2016 with a Scottish Ltd Company and was never once asked this question and don't recall it ever even being a point to be discussed.

[agentzero]

Not quite, it's all above board and the usual payment route everybody decent person uses. I was astounded to learn that my total remuneration isn't included in the figures that are allocated to Scottish tax payers. The last few years I've entered the higher rate, due to taking more dividends. I and every PSC contractor in Scotland who uses an England based Limited Company is not counted as a higher rate taxpayer by the ONS. This applies to any size of Limited Company. If you consider the number of people this applies to, it's easy to see that the current system of calculating how many higher rate Scottish taxpayers there are is lowball and inaccurate. It's a statistical error that is not an accident.

It affects any future referendum, as we're all lumped into English tax stats instead of Scottish. Most richer people earn via an England Limited Company, so the figures are heavily skewed right now. It needs broken down.

[ladymuck]

In what way am I forgetting? Monies paid in dividends and a salary not attracting NICs aren't registered in Scotland for a Limited Co based in England. The dividends I receive from the Ltd Co registered in England are considered to be based at the company address: Accountant address that must be in England.

I'm fully aware that taxes are treated differently based on location of the individual, but the figures for those of us receiving monies from a Ltd Co based in England are not included in tax-take and distribution within Scotland in UK gov reports. 'Higher Earners' section excludes us, as we're paid in dividends. If we paid ourselves remuneration only by PAYE then we would appear on the list of higher earners in Scotland.

So you're saying you are resident in Scotland yet pay English tax rates on income you draw?

Sounds a bit tax fraudy to me

[ladymuck]

Four agencies I've worked with have specifically told that if my company is a Scottish Ltd Co then it's a no-go. Date range 2014 to 2018. Includes larger groups such as Hays and TekSystems/Allegis Group.

I'm suggesting that agencies registered as English Ltd Cos and/or clients registered as English Ltd Cos didn't want to have a Scottish Ltd Co as the contractor. I don't see why clients would care, as it's a b2b contract with the agency for them, so I assume some agencies had a blanket policy for reasons unknown to me. If you can expand, such as you not having this issue, then that's helpful. I know people who have purposefully registered an English Ltd Co and the associated hassle, such as mail forwarding address required or an accountant with an address in England, to ensure they can apply for the contracts that demanded an English registered Ltd Co.

Being registered in Scotland means that operation of the company is liable to Scottish law, not English. There are some quirks in the Scottish legal system that are probably make things a bit more complicated.

[Mordac]

For PSCs this doesn't apply. Salary is the same as yours. For most here it's £8840 + dividends of £41430.

Are you from Brigadoon, by any chance?

[agentzero]

Which nation the company is registered in has no bearing on the personal tax status of its directors / employees. The company can be registered in England & Wales but the director be resident in Scotland and their income is therefore subject to Scottish tax law.

Someone is forgetting that a LtdCo is a separate legal entity to the individual.

EDIT: what will be interesting is if/when Scotland gets control over other taxes such as CT for Scottish registered companies...

In what way am I forgetting? Monies paid in dividends and a salary not attracting NICs aren't registered in Scotland for a Limited Co based in England. The dividends I receive from the Ltd Co registered in England are considered to be based at the company address: Accountant address that must be in England.

I'm fully aware that taxes are treated differently based on location of the individual, but the figures for those of us receiving monies from a Ltd Co based in England are not included in tax-take and distribution within Scotland in UK gov reports. 'Higher Earners' section excludes us, as we're paid in dividends. If we paid ourselves remuneration only by PAYE then we would appear on the list of higher earners in Scotland.

[agentzero]

Wrong again. Please stop spouting this rubbish.



"I know two people" does not mean "sod all chance" (and I'm sceptical that there's not more to this)



I've no clue what you're trying to say here.

Four agencies I've worked with have specifically told that if my company is a Scottish Ltd Co then it's a no-go. Date range 2014 to 2018. Includes larger groups such as Hays and TekSystems/Allegis Group.

I'm suggesting that agencies registered as English Ltd Cos and/or clients registered as English Ltd Cos didn't want to have a Scottish Ltd Co as the contractor. I don't see why clients would care, as it's a b2b contract with the agency for them, so I assume some agencies had a blanket policy for reasons unknown to me. If you can expand, such as you not having this issue, then that's helpful. I know people who have purposefully registered an English Ltd Co and the associated hassle, such as mail forwarding address required or an accountant with an address in England, to ensure they can apply for the contracts that demanded an English registered Ltd Co.

[ladymuck]

Which nation the company is registered in has no bearing on the personal tax status of its directors / employees. The company can be registered in England & Wales but the director be resident in Scotland and their income is therefore subject to Scottish tax law.

Someone is forgetting that a LtdCo is a separate legal entity to the individual.

EDIT: what will be interesting is if/when Scotland gets control over other taxes such as CT for Scottish registered companies...

[Paralytic]

For PSCs this doesn't apply. Salary is the same as yours. For most here it's £8840 + dividends of £41430.

Eh? Are you saying those resident in Scotland don't pay Scottish income tax if they're paid via their own PSC? That's complete rubbish.

[Paralytic]

I should have worded it with additional "...if you want to get any contract signed."

Up until 2018 you had sod all chance of getting an agency to agree to have a Scottish Ltd Company provide PSC equivalent services.

Wrong again. Please stop spouting this rubbish.

I know two people who had to set up English Ltd Companies instead. Agents being quick to ask if I had a Scottish Ltd Company and that they hoped not, prior to contractor friends having issues, suggested it wasn't a good idea.

"I know two people" does not mean "sod all chance" (and I'm sceptical that there's not more to this)

As a guess, I expect many end clients were based in England and even Scottish agencies having formed English Ltd Companies resulting in domains being rightly or wrongly limited to England only.

I've no clue what you're trying to say here.