• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

PS Contracting Post April 2017 - Work Through 2 LTD Companies

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    PS Contracting Post April 2017 - Work Through 2 LTD Companies

    If the expected changes to public sector contracting come in next April whats to stop someone just setting up 2 LTD companies and sub contracting the gig through one to the other. Surely this way the first company would be liable for making the tax choices for the other. Am I over simplifying this??

    #2
    Yes.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      PS contracting is dead from April 2017, no matter whichever way you cut it.

      Comment


        #4
        Originally posted by pjt View Post
        If the expected changes to public sector contracting come in next April whats to stop someone just setting up 2 LTD companies and sub contracting the gig through one to the other. Surely this way the first company would be liable for making the tax choices for the other. Am I over simplifying this??
        Nope, its up to the agency (delegated from the Public sector organisation) to decide and the agency / their directors will be liable for the tax if they allowed you to pay yourself incorrectly.

        I know both NLUK and Milkyway have said the same just wanted to add the devil and some detail.

        Basically public sector contracting is dead, go into the private sector or move outside the bum on a seat viewpoint...
        merely at clientco for the entertainment

        Comment


          #5
          Originally posted by eek View Post
          Nope, its up to the agency (delegated from the Public sector organisation) to decide and the agency / their directors will be liable for the tax if they allowed you to pay yourself incorrectly.

          I know both NLUK and Milkyway have said the same just wanted to add the devil and some detail.

          Basically public sector contracting is dead, go into the private sector or move outside the bum on a seat viewpoint...
          With yesterdays news thought I'd revisit this one. Is the decision not up to the last person in the queue so

          PS Client>Agent (decision)>My Co
          PS Client>Agent>My Co (decision)>My Co2

          Comment


            #6
            Originally posted by pjt View Post
            With yesterdays news thought I'd revisit this one. Is the decision not up to the last person in the queue so

            PS Client>Agent (decision)>My Co
            PS Client>Agent>My Co (decision)>My Co2
            Eh?

            What is the difference between my co and my co2?

            Comment


              #7
              It was a terrible idea in the first place. Revisiting it isn't going to help.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Gawd, it's muppetry like this that causes half our grief.

                You may as well staple a "kick me" sign on your back and reverse into HMRC.

                Comment


                  #9
                  Originally posted by pjt View Post
                  With yesterdays news thought I'd revisit this one. Is the decision not up to the last person in the queue so

                  PS Client>Agent (decision)>My Co
                  PS Client>Agent>My Co (decision)>My Co2
                  You can setup a million YourCos, it won't help when the agencies force every PS contract through umbrella or create their own umbrellas to guarantee nothing will come back to bite them. They don't give a rats ass about your take home pay.

                  If you feel offended by this because you are a real business - go direct.

                  Comment


                    #10
                    The reason we use Limited companies is because of rule changes in the 70's that stopped us from being self employed - Rules were introduced that would make the agencies liable for the NI of the self employed and so to remove this possibility, all contractors had to either be PAYE or Ltd. It's exactly the same now...the agencies will simply offer you the chance to work PAYE on their books/affiliated brolly or ltd but the contract will be inside IR35 and the tax is deducted before it comes anywhere near your company. It doesn't matter how many companies in the chain you own....the one that gets the cash from the agency will only ever get the cash minus the deductions
                    Rule Number 1 - Assuming that you have a valid contract in place always try to get your poo onto your timesheet, provided that the timesheet is valid for your current contract and covers the period of time that you are billing for.

                    I preferred version 1!

                    Comment

                    Working...
                    X