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Reply to: MSC to Limiteds
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Previously on "MSC to Limiteds"
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Originally posted by cityboyCan you still claim vat back on purchases?
No VAT is reclaimed but you can on any assets purchased in excess of £2000 - this has to be a single asset, so in most cases the VAT on a PC etc will not be reclaimed as few will cost in excess of £2K.
Alan
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Only got contract until middle of may and no chance of renewal.
Going from MSC to brollie for last 2 months, opening a ltd is easy but closing was a right pain last time. Will go LTD when/if new contract turns up but can't rule out (light touchpaper and retreat) going perm after this one...
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Originally posted by Nixon WilliamsWe provide the set up & company formation for free, insurance cover can be sorted for about £2/300.
VAT is still charged at 17.5% but in year 1, only 12% of the gross invoices is paid over assuming you are in IT. The savings made here will more than pay for insurance cover and accountancy fees.
Alan
Can you still claim vat back on purchases?
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and year 3? is it a sliding scale or is there a limited to this benefit?
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VAT is still charged at 17.5% but in year 1, only 12% of the gross invoices is paid over assuming you are in IT
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Originally posted by jh0711it is a good point Alan I believe there are VAT benefits (to do with flat rate vat - no idea of how it works)
however what about
Insurances (employers, public liability and PI)
initial cost of company formation
etc etc etc
these are all costs people would need to find money for up front when they move from MSC to LTD
VAT is still charged at 17.5% but in year 1, only 12% of the gross invoices is paid over assuming you are in IT. The savings made here will more than pay for insurance cover and accountancy fees.
Alan
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Originally posted by jh0711the point I was trying to make is that if you are on £15 per hour and you ask to go PAYE with the agency they may say yes but the rate you will be on will be £13 per hour
sorry for confusion
What you say above is correct. Just worth pointing out to those that are unaware that this is because the agency is now paying the employer's NI, not the contractor and that the take home is effectively the same.
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hey bob I was just making the other poster aware that the rate will drop - you will no longer be on the same rate - yes as you say there will be no difference between take home pay (well there will be maybe a slight difference due to that other conversation)
the point I was trying to make is that if you are on £15 per hour and you ask to go PAYE with the agency they may say yes but the rate you will be on will be £13 per hour
sorry for confusion
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Originally posted by jh0711do either dp or modis try to disencourage (???) you from going PAYE?
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Originally posted by jh0711if inside IR35 and not claiming expense it may be the way to go - however be aware your rate will drop if you go PAYE direct with agency as they will start to incur the employer costs (holiday pay, employers NI etc) they may also charge a small fee for PI insurance.
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do either dp or modis try to disencourage (???) you from going PAYE?
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Originally posted by gingerjediSurely a good agent can do PAYE? mine (Modis) has the option if I like.
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