Reply to: I'm done with using a limited.

[sirja]

I think if the current 'direction of travel' continues from the govt and HMRC, then in the next 5 years, we'll be brolly(if not sooner) and 1 person LTD will be a thing of the past. That seems to be how it's going.

[No2politics]

Pay yourself in full?

[SueEllen]

I stared contracting less than 4 years after starting my first permanent role. Been contracting 7.5 years now. I think IR35 has clearly shaped how i work and i agree with the posts - i work to deliverables. Dont get involved socially with the permies and try and distance myself as much as possible from day to day operations. Why do I do that? Because of IR35. I have come to the conclusion that this behaviour has rubbed off on mynpersonal life - i find myself instantly saying no to friends requests to socialising. Saying no and distancing myself from others has become the default option now. Does it bother me? Slightly it does. But im income splitting a rather high daily rate which probably makes upnfor it

You can socialise with permies as long as you pay yourself in full as smokers end up socialising with permies on their smoking breaks. However if you don't want to be drawn into office politics then don't.

[NibblyPig]

I am LTD, I just assumed it was the best way. I honestly don't know the advantages or reasons for going brolly. Perhaps I should look into it, especially come April.

I don't have any problems running the LTD. I don't blur the lines with IR35 and I have legal cover with IPSE in case there is a dispute, so I feel pretty comfortable about my situation though, I don't feel stressed about it.

[No2politics]

I stared contracting less than 4 years after starting my first permanent role. Been contracting 7.5 years now. I think IR35 has clearly shaped how i work and i agree with the posts - i work to deliverables. Dont get involved socially with the permies and try and distance myself as much as possible from day to day operations. Why do I do that? Because of IR35. I have come to the conclusion that this behaviour has rubbed off on mynpersonal life - i find myself instantly saying no to friends requests to socialising. Saying no and distancing myself from others has become the default option now. Does it bother me? Slightly it does. But im income splitting a rather high daily rate which probably makes upnfor it

[MPwannadecentincome]

Do you pay yourself min salary and your child payments are based on that?

No - child maintenance calculations include dividends.

[d000hg]

I run a limited company for the last 10 years, and found it not that onerous.....

It's not onerous until that letter comes through the door with the HMRC logo on it

[wantacontract]

I run a limited company for the last 10 years, and found it not that onerous.....

I pay myself around 12k in salary and take dividends, I am very risk averse on expenses....not taken the piss with travel/accomodation at all...bought the odd laptop and pc....5 years ago!

i am going to buy myself a decent laptop this business year....with expenses though....

[woohoo]

There is also the timing factor.

Umbrella - your have to take all fee income out as PAYE you can't "leave it in" the Umbrella.
With Ltd Co you can take some out now and the rest at another time, thus defer some higher rate tax to another day or not pay higher rate at all if you have a long enough bench period. Also can use salary sacrifice to put some into a pension (can you do that with an umbrella?).

Depends on your lifestyle and rate of course, for me I don't need to withdraw everything (motivation is missing with child maintenance as %age of income being like an additional tax for me!).

Do you pay yourself min salary and your child payments are based on that?

[MPwannadecentincome]

Then if I understand all this correctly, and my numbers are right

the amount you lose on dividend tax vs the amount you lose on employers NIC is about the same.

so in cash terms, it's a wash. roughly

but if you go brolly, you can be corralled, identified and mass-f*cked
but if you stay ltd, you might get forced to be an employee, soonish


nice.
very nice

There is also the timing factor.

Umbrella - your have to take all fee income out as PAYE you can't "leave it in" the Umbrella.
With Ltd Co you can take some out now and the rest at another time, thus defer some higher rate tax to another day or not pay higher rate at all if you have a long enough bench period. Also can use salary sacrifice to put some into a pension (can you do that with an umbrella?).

Depends on your lifestyle and rate of course, for me I don't need to withdraw everything (motivation is missing with child maintenance as %age of income being like an additional tax for me!).

[MrMarkyMark]

You'd be surprised what you can put in an envelope.

I thought it was the sole purpose of €500 notes, unless you are a rap star.

[scooterscot]

Drug deal, done good then

You'd be surprised what you can put in an envelope.

[EternalOptimist]

would I still be allowed to post on here ? i'll promise to stop doing global warming stuff, and stick to the jokes

[MrMarkyMark]

I recall taking out €34k over till, no issues. Put it back in a couple of weeks later after the borrowing was done.

Drug deal, done good then

[scooterscot]

Oh I fancy a directors loan. What you can only help yourself to 5K?!

I take as much out the bank as I want. I recall taking out €34k over till, no issues. Put it back in a couple of weeks later after the borrowing was done.