Doing business as a LLP

[craig1]

I'm all for learning more.

Can you reduce tax paid by using expenses similar to the way we can with Ltd companies?

Yes. Have a read of the guide I linked in my original post for more info on contracting as a LLP.

[jmo21]

I'm all for learning more.

Can you reduce tax paid by using expenses similar to the way we can with Ltd companies?

[craig1]

Set up and register a limited liability partnership (LLP) | Business Link

It's basically to stop IR35 investigations.

The reason why you were told to set up as Limited or Brolly is you may have set up your company before or around the year 2000.

No PAYE, no Corp Tax, no dividends, no employer's NI. Simply a tax of profits in Self Assessment.

For our particular circumstances, a LLP is far more sensible than a Ltd Co. If people aren't sure though they should get professional advice.

[jmo21]

Set up and register a limited liability partnership (LLP) | Business Link

It's basically to stop IR35 investigations.

The reason why you were told to set up as Limited or Brolly is you may have set up your company before or around the year 2000.

Nope it was 2007.

Looking at the first timers guides on here, they only mention Ltd's or brollies.

[SueEllen]

Dunno, that was just always the impression I had. The last time I even thought about an LLP was when I started contracting, and I'm sure on here the advice was eith Ltd or Brolly was the only way to go.

What advantages does it give you over using a Ltd?

Set up and register a limited liability partnership (LLP) | Business Link

It's basically to stop IR35 investigations.

The reason why you were told to set up as Limited or Brolly is you may have set up your company before or around the year 2000.

[jmo21]

Why not? I've been contracting as an LLP for more than a few years now. Mainly IT project management and with agencies large and small.

A LLP is legally the same as a Ltd Co in that it's an independent legal person for the purpose of contracting with another person or business.

Dunno, that was just always the impression I had. The last time I even thought about an LLP was when I started contracting, and I'm sure on here the advice was eith Ltd or Brolly was the only way to go.

What advantages does it give you over using a Ltd?

[craig1]

I was under the impression none of the usual IT recruitment agencies would have the ability to use a contractor working under an LLP.

Are you in IT or some other field?

Why not? I've been contracting as an LLP for more than a few years now. Mainly IT project management and with agencies large and small.

A LLP is legally the same as a Ltd Co in that it's an independent legal person for the purpose of contracting with another person or business.

[jmo21]

I was under the impression none of the usual IT recruitment agencies would have the ability to use a contractor working under an LLP.

Are you in IT or some other field?

[dddmira]

Agencies are used to working with Limited Companies and Umbrellas. They're not going to be used to dealing with an LLP and so they're going to be very wary and I'm not surprised if they say they won't deal with it, even if there is not really a good reason - it's just them sticking to what they know and what they know is safe for them.

I've been contacted by a TAX Consultancy recently peddling an LLP structure and learned during the discussion that they provide a Ltd company interface to deal with agencies that reasigns any potential debt obligations on the agency around outstanding tax to the Ltd co.
Hex is right - agencies are just used to dealing with Ltds.

[Hex]

Agencies are used to working with Limited Companies and Umbrellas. They're not going to be used to dealing with an LLP and so they're going to be very wary and I'm not surprised if they say they won't deal with it, even if there is not really a good reason - it's just them sticking to what they know and what they know is safe for them.

[craig1]

Right... new gig started today, direct with client but payroll done through third party agency. I've been contracting through my own LLP for years (other member in the LLP is my also contracting wife) and had no problems yet this agency has point blank refused to work with me. The first reason was that me being an LLP meant that I must be a MSC. After I treated that with suitable disdain, they came back and said because LLPs don't use PAYE to pay members that they couldn't deal with me.

I tried to make it clear to them that it was my LLP contracting with them, not me individually, but they dug their heels in.

It's a good client with interesting projects so I've had to rush through a same-day Ltd Co incorporation and now have to piss around with PAYE, Corp Tax, etc unless I can come up with a creative alternative.

The PCG's guide has a substantial section on contracting as an LLP so I can only assume that there are others out there doing the same.

So, two questions really:

Anyone else contract through a LLP and, if so, have you had any problems?

Anyone have any suggestions for making my life easier in terms of a creative alternative?