Composite Companies

[Gonzo]

Sh1t!!!

I had a LTD for 10 yrs and got fed up with all the paperwork etc. My accountant wasnt the best either and filed forms late etc which accrued fines that i had to pay. The composite took a lot of hassle out of getting paid a decent amount and not having to worry about the tax and vat bills at the end of the yr/qtr and wondering how much i would be left with at the end.

I dissolved the LTD last yr and went brolly but now i suppose ill be back to LTD hell. I'll ring the brolly and quote the above 1st though to see what they have to say about it.

Thanks

Go through an accountant that is used to dealing with contractors. The usual names crop up on here all the time.

There is very little for you to do yourself. Most of these accountants say that your effort will be about 15 minutes a month but I don't think that I spend that long on it.

[Mailman_1]

Sh1t!!!

I had a LTD for 10 yrs and got fed up with all the paperwork etc. My accountant wasnt the best either and filed forms late etc which accrued fines that i had to pay. The composite took a lot of hassle out of getting paid a decent amount and not having to worry about the tax and vat bills at the end of the yr/qtr and wondering how much i would be left with at the end.

I dissolved the LTD last yr and went brolly but now i suppose ill be back to LTD hell. I'll ring the brolly and quote the above 1st though to see what they have to say about it.

Thanks

[ContractIn]

You could get a ltd set up in a day really. Its easy enough to do, just find a decent accountant (plenty on this site, Nixon Williams etc etc) and they will help you through it all, practically do it for you. I recommend everyone to do it and get out of these brollies/composite/MSC as you DONT need them. My short experience of them is that they are a joke, IMO!!!

Been with one for two years, and even though the monthly take home is very nice thanks, I dont like not being in control and reliant on people who you never meet, so think my mind is made up! going permy

[Barriebazg]

Mine isn't the traditional "umbrella" and is based offshore..

How long does it take to setup a ltd? I am in an existing contract that runs until June?

You could get a ltd set up in a day really. Its easy enough to do, just find a decent accountant (plenty on this site, Nixon Williams etc etc) and they will help you through it all, practically do it for you. I recommend everyone to do it and get out of these brollies/composite/MSC as you DONT need them. My short experience of them is that they are a joke, IMO!!!

[ContractIn]

I'm pretty sure it doesn't matter where the company is based, if the work is undertaken in the UK then you come under HMRC

If you want to set up a Ltd a lot of the guys on here can help - try SJD or Nixon Williams

Yep seen them mentioned many a time. Off skiing next week, so on my return will start the ball rolling.

Many thanks

[Bluebird]

Mine isn't the traditional "umbrella" and is based offshore..

How long does it take to setup a ltd? I am in an existing contract that runs until June?

I'm pretty sure it doesn't matter where the company is based, if the work is undertaken in the UK then you come under HMRC

If you want to set up a Ltd a lot of the guys on here can help - try SJD or Nixon Williams

[ContractIn]

People should have ALREADY left - who going to be the last rat on the sinking ship ?

Mine isn't the traditional "umbrella" and is based offshore..

How long does it take to setup a ltd? I am in an existing contract that runs until June?

[Bluebird]

Who is your "Umbrella" I have been chasing mine for a response but they have yet to get back to me. As you say, people will be leaving in their droves..

People should have ALREADY left - who going to be the last rat on the sinking ship ?

[ContractIn]

I rang my "Umbrella" to ask them where their company falls in the Umbrella/PSC/MSC arena. They said they are a composite so fall outside of the rules to be implemented on 1st April. They promised me 100% that none of the new rules apply to composites.

Is this the case as im a bit dubious about just believing them? They prob wouldnt tell me if they did fall within the rules as they would be losing money when i closed my account with them.

Thanks

Who is your "Umbrella" I have been chasing mine for a response but they have yet to get back to me. As you say, people will be leaving in their droves..

[Bluebird]

I guess it depends on what they are referring to as "not apply" - if you are already having all your income processed as PAYE, then the rules do not apply - they only apply if you use a MSC/Composite/umbrella and take payment as part salary / part dividend and use expenses to off-set tax.

If your contract is outside IR35 - get Ltd NOW.

[LisaContractorUmbrella]

To quote directly from the legislation (page 11 for anyone interested):

Managed Service Companies (MSC's) are intermediary companies through which the services of a worker are provided to an end client. These are often known as "composites" or "managed personal service companies".

The new legislation is called 'Tackling Managed Service Companies' so I really don't see how your service provider can state that it will not affect them - I think you were absolutely right to be cautious Mailman_1

[Mailman_1]

I rang my "Umbrella" to ask them where their company falls in the Umbrella/PSC/MSC arena. They said they are a composite so fall outside of the rules to be implemented on 1st April. They promised me 100% that none of the new rules apply to composites.

Is this the case as im a bit dubious about just believing them? They prob wouldnt tell me if they did fall within the rules as they would be losing money when i closed my account with them.

Thanks