Reply to: Do I really pay less tax as a limited company

[PurpleGorilla]

Going direct to client, or an agent setting up a direct client contract and taking a fee seems the obvious way to side step the T&S nonsense

[LisaContractorUmbrella]

When are the t&s changes supposed to be happening? In 7 months or 19?

Anyway, with the dividend tax I think you will be around 2k worse off than you were before (not counting the utter destruction of your investments and pension). This is not the same as only saving 2k a year versus going permy and hitting the 60% tax rate + national insurance etc.

April 2016

[hugebrain]

I'm just thinking with all the T&S and other stuff that could kick in, can I be bothered staying ltd if it saves only one or two grand a year?

When are the t&s changes supposed to be happening? In 7 months or 19?

Anyway, with the dividend tax I think you will be around 2k worse off than you were before (not counting the utter destruction of your investments and pension). This is not the same as only saving 2k a year versus going permy and hitting the 60% tax rate + national insurance etc.

[LondonManc]

Because not all companies calling themselves umbrella companies are legit.

Fair comment. I was just thinking out loud about different options that we may all have next year - wondering if those of us that have to head to the smoke more often than not may fair better with an umbrella company for example.

[SlipTheJab]

Because not all companies calling themselves umbrella companies are legit.

Aah the 90% retention brollies, whats not to like

[SueEllen]

Some don't like you going through Umbrella Companies either (no idea why)

Because not all companies calling themselves umbrella companies are legit.

[gables]

Agencies Act 1978?

It's something like that, I shouldn't be so lazy and go a find out. Mind you when I first went contracting in 1993 sole trader was discussed with the accountant in conjunction with LTD.

[stek]

That does sound daft, the sole trader option seems to be discounted due to some legislation.

Agencies Act 1978?

[gables]

Some don't like you going through Umbrella Companies either (no idea why)

That does sound daft, the sole trader option seems to be discounted due to some legislation.

[LondonManc]

But operating as a Sole trader via agencies isn't an option though is it?

Some don't like you going through Umbrella Companies either (no idea why)

[gables]

Operating through their own ltd company doesn't suit everyone of course eg those workers who are on very short term contracts, those earning low incomes and those who simply cant be bothered with the hassle of owning a ltd company. So to operate via an Umbrella or operate as a Sole Trader are other options available.

But operating as a Sole trader via agencies isn't an option though is it?

[LondonManc]

There are some calcs in the threads in response to the other knee jerk posts I believe. STJ as summarised it nice and simply.

I'm just thinking with all the T&S and other stuff that could kick in, can I be bothered staying ltd if it saves only one or two grand a year?

[northernladuk]

On a more serious note, has anyone run the number on the comparison between dividend tax increases and corporation tax decreases and where it leaves us?

There are some calcs in the threads in response to the other knee jerk posts I believe. STJ as summarised it nice and simply.

[SlipTheJab]

Maybe in Apr 2016 its time to switch to Permie with new dividend tax??

so 2k-ish a yr extra to Gideon sends you back permie, YANCOTBAC,

[LondonManc]

It appears so.

On a more serious note, has anyone run the number on the comparison between dividend tax increases and corporation tax decreases and where it leaves us?