100k+ Tax threshold through umbrella

[mb7ct]

Hi all


After having my tax code shifted around recently and taking a large tax chunk out of take home pay I am keen to understand the most efficient use of earnings in the new tax year coming up.

My day rate with my agency is 500pd, meaning HMRC have put my expected...

[0xsrwea31]

Hi everyone! I'd like to ask you for some help to make the best decision. Here's my situation:

1. Currently working as perm
2. The client I'd be contracting for is based in the US (which is why they can only hire me as a contractor in the UK)
3. They don't have a clue of what inside/outside IR35 means
4. I'd

...

[davec123]

Good evening all,
I’ve been out the contracting work for a few years now and been books in. I’m thinking of returning to contracting and looking for advice from anyone working inside IR35 now.
1. Do I still need to be a Ltd company or Will sole trader work?
2. The consultant jobs...

[alangarden]

So this has been done to death but wanted to check my ‘maffs’!

I’m considering purchase of a motorbike purely for business use to dive in and around city centres when visiting Clients (it may also only be used in a sunny day!). Making use off the Annual Invesment Allowance and the...

[ContractorGC]

Umbrella companies deduct employer NI and employee NI from a contractor’s day rate agreed with the hiring manager. Is this fair? Is the umbrella companies just a facade for double NI collection from a contractor’s day rate? Most hiring managers are not even aware that employer’s NI is being paid...

[steveclv]

I retired to France in 2020 having been an IT contractor for several years. However I am now being invited to work for a UK company remotely. I am registered for French tax but am not yet up to speed on the post Brexit situation.
I'm not intending to set up companies to handle this - just act...

[rorybracker]

I have been working direct (with no agency) with a well known IT Consultancy company in the UK and just about to finish my current project for their client based in the UK.

This same IT Consultancy company in the UK now offer me a role to work on the other project run by them. The end...

[gh22]

I'm having frustrations with my accountant (they are one of those cloud accountants which lack that personal touch), and wondered if anyone else has gone through similar.

I've recently ceased trading and informed my accountant that I'd like to close the company via MVL and get to the...

Hi All,
I am looking to become an IT contractor. I have interviews for both an inside IR35 role and outside.
For arguments sake lets say they are both offering 450GBP a day for 6 months (lets say 120 days of work).
Therefore I get 450*120=54,000GBP sent to me.

My...

[alex1011]

I have a property which is rented out for £2,000 pcm. I transfer the net proceeds of circa £1500 (minus agents fees, maintenance etc deducted) to my Mum each month to support her.

My Mum doesnt have another income so would pay less tax than me. Is there a way for me to not complicate/change...

[petafin]

Hi,

I used to be a LTD contractor and just moved to IR35. I got my first payslip but I don't understand it. Can someone explains to me those numbers?

The weekly pay is £3825 based on a 5-day week at £765.

The total paid by the client to the umbrella company is...

[Sintra]

My accountant has just prepared my first set of annual accounts and company tax return, and sent it to me for signing (along with a nice disclaimer telling me 'on my head be it', *nervous laugh*). This is all new to me, and I bet many contractors (I have a few I know in mind just trust their accountant...

[irishcontractor]

Hi Folks,

Sorry if this has been asked before but new to the whole contracting business, I have a UK LLC that I use to invoice my client at the end of every month for the IT work I do.

The client is a UK based and registered company but all the work I carry out for the...

[emma357]

From 1st January 2021 the rule to determine where we pay tax drops from 183 days in Sweden to about 20! We will have to pay Swedish tax on any income that we earn in Sweden.

This article is old but gives you a flavour. Swedish proposal on how to distinguish employment relationship...

[sabros123]

Hi,

I am a healthcare professional that is very new to the contracting gig. My next assignment is happy for me to be paid via umbrella company, thus presumably saving me some money overall.

A colleague has advised 'Alpha Republic Limited' to help me with this and states...

[ROSS84]

I'm a UK citizen, currently working in a staff position in Spain with a Spanish company.

In a couple of months time, I will be moving back to contracting. I'm looking for advice on whether an Umbrella company or Ltd company is the best route to go down?

Details are:...

[Dib]

Hi contractors, need some advise here:

1) Can I take dividends from a dormant company whilst working for an umbrella?

2) If yes, and I take dividends from my dormant company, what tax rate would I be looking at? Will these these be the usual dividends tax rate of 7.5%, 32.5%...

[Willy Win]

Asking this question as it looks like most threads are focusing on furloughing. Is it a definite that Universal Credit can be claimed as a director and not just self employed?

Also, if that's the case, I believe there's a 5 week wait. Would it be feasible to furlough myself in that...

[mockedguy]

I don't get the logic behind HMRC and the IR35 changes. As far as I understand the ultimate objective is to increase the tax revenue to HMRC, based on the assumption contractors are underpaying it, but the figures seem to state the opposite.

e.g. I made up a spreadsheet to compare the...

[mowog]

Hi all,

I'm new here, and also new to contracting.

I've been offered a 6 month public-sector contract with what seems to me like a fairly mind-boggling day-rate. I've been told by the recruitment agency that I can either be paid PAYE through them, or go through an umbrella...

[geekcubed]

Long-time lurker, first time poster: looking for advice on the best way to structure an equity based deal.

First off the bat : yes I am going into this eyes open, I am aware of the risk that I will get a big fat cheque for zero pounds.

I'm a freelance web developer: sole-trader,...

[BobbyCrane]

I work in the public sector, paid through an umbrella company (I wont name them yet) which failed to make the correct tax deductions and resulted in a £27,500 tax bill for 2018/19 and because I don’t have that kind of cash sitting around, a likely interest bill between £1,800 and £2,000.
...

[LPP]

So after working as a perm for 16 years, I have been offered a contract to work for a company in Poland. The contract says that they will take a 20% local withholding tax and I am guessing I will also have to pay VAT for the UK too, which leaves me worried that it wont be worth it? Anyone else worked...

[peter77]

I have a company in the UK (Ltd) and work for a non-profit organization based in Lichtenstein.

The non-profit sends payments to my Ltd in form of grants, they don't require or accept any invoices from my Ltd. I need to create invoices in order to keep record of the received payments anyway....

[NathanG]

Hi all, can someone please help me figure out the whole SA shebang?

Do you usually start well in advance and have everything ready by the time you file your Self Assessment? How much time would you say you usually need (per month or total)? Is the workload typically manageable? How do...

[TheKnight]

Hi,
I started contracting through a limited company in Feb this year. When I signed up with my accountant, they promised that the year-end tax filing and all services would be included in their package and I pay them a monthly amount. Now when filing tax for the year 2018/2019, they are charging...

[fiddleleaf]

Hi there, I started contracingt just about 7 months ago, and have a question about dividends.
I have taken about 2/3 of lower % dividents out, but have money in my bank account saved up for tax, just thinking is it worth taking that money out as dividents, as tax doesn't need to be paid for a...

[kuba]

Hello!

I have a question. We're a VAT-registered business in the UK.
We have a business trip coming to Japan. We want to buy electronics intended for business use (mainly digital cameras) there. They are much cheaper in Japan.
We would be bringing them in personal luggage....

[94bb]

Hello,

I made a bad investment (crypto - no smirking please) last year via my limited and have now cashed out at a loss of £20k. Please could someone advise whether this will have an impact on Corp and VAT tax for the company?

Thanks in advance
Bb

[Cyc1one]

Hi,
This is my first post, but I did a search and can't find an answer to this question or a similar question already.

I've been offered the option to go permie with my current client, but there's a long lead time on it, like it's now January and we're talking about it being in...

[AFKMatrix]

Hi there,

I'm new to this forum and I am looking into becoming a contractor but not until April next year.

But I currently have a car on PCP that ends in April of next year and so I am currently looking for a replacement. Now I am confused whether I should get the new...

[twickenkam]

Hello,

I want to hire/outsource to a foreign self employed person with their business registered in a EU country and the person doing the work from their country. I want the person to help my LTD with some training and some admin work. I am wondering now when I pay for such services to...

[LITSM]

I've finally taken the plunge and opened up own company. When it comes to paying myself I've read that it is best to pay yourself £8,164.00 per year so that you don't need to pay NIC but still get awarded the credits towards your state pension. However if I am to pay myself (it is only me working...

[Jackthedog]

Hi,

Need some help, sorry this question may have been posed many times before but I am not clear.

I’m new to contracting and have just set up a limited company (am director and am employee) and started as a worker providing IT Consultancy Services.

I have...

[EonsTimE]

Hi, I need to fill in P11D for my Ltd company and I'm having hard time finding a definite answer; could you review my two questions as follows:

1) Throughout the last year I've claimed (as a Director, flat rate VAT and PAYE registered) expenses/sustenance from my company for meals bought...

[jrshubrook]

Hello,

This is my first post so I hope this is helps people who are in need of the same information.

I am looking to set up a limited company. I have been offered a day rate of £120.

To make the most from Tax and NI exemptions I have opted to set up a ltd company....

[WhiteRabbit]

Hi and upfront thanks for any input... including putdowns ,

I am UK domiciled and tax resident and it will stay that way
I have an upcoming contract with an end client in Germany.
The end client has a service delivery contract with a German service provider
Services...

[AlexKol]

Hello guys
I made a beginner's mistake! Didn't realise that my ltd company financial year comes to the end today, it's only my first year of operation most of which company was dormant anyway. I thought i had time till end of March and still had time to soet things out! During first months I...

[BobbyBob]

Can my company make a sudden and large pension contribution which takes the company into a loss? Assuming I keep the company solvent.

Imagine this scenario:

Earlier in the financial year I declared a dividend, while there was plenty of profit available, as I normally do...

[GoldPlatedPermie]

Hi - does anyone have experience of the Portugal NHR regime.

http:// nonhabitualresidentsdotcom - Non-Habitual Residents – Portugal – NDR | Portuguese Non-Habitual Residents Regime


I work remotely for a UK company via a UK Ltd company and...

[Jonathan9528]

Hi,

My wife and I currently live in New York but will be relocating to the UK shortly. She wishes to continue working for her advertising agency remotely so has set up a UK Ltd Company to undertake contracting work. Work will only be undertaken remotely from the UK.

If...

[adamaid]

Hi All,

Apologies if this is a noob question - I did try searching the forums for a clear answer and wasn't able to find one.

I have recently started freelancing through a UK limited company (not VAT registered). I work with clients all over the world, and whilst I bill...

[Concorde]

Are contractors working with a public sector organisation through a PSC (ltd company) under IR35 deemed employment arrangements able to recover employer's national insurance contributions on company (PSC) pension contributions.
There seems to be volumes written about IR35 but can't seem to find...

[ginjar]

I have been offered a contract with a university client.

I was told that the contract would fall under IR35 and they would try to get me a higher gross rate to cover the difference (normally I run contracts through my ltd company).

The final rate agreed was 500/day. The...

[nelsonswork]

I'm a contractor working for a goverment agency and Capita is handling my billing. I've been forced under IR35. Capita is now taking out of my day rate the apprentiship levy tax at .5%. This is only required by companies with a payroll over 3million. My company does not have a payroll of over 3m, So...

[OneManBand]

I hold ETFs in an investment account owned by my Ltd co.

For some reason, this year my broker has started withholding full 30% of US taxes on dividends. This has never happened before, and I have always diligently filled in my W-8BEN-E. I have tried to get an answer from the broker, but...

[DeadEyedJacks]

OK,
So have done first draft of personal self assessment tax return.
£2K to pay in Dividend tax no surprise there.

Payments on account of £2K for tax on possible future dividends,
that's a bit of a surprise!

Given the ongoing economic uncertainties...

[dotcom12]

HI, I just wanted to get the forums thoughts on employing my wife through the ltd company. My wife doesn't work and it seems to make economical sense to employ her through the company in order to utilise the personal allowance as well as getting her assistance for administrative tasks.

...

[londongirl7]

I am having an absolute nightmare and need some help! I've been contracting since August 2016 and at the time I was rushed into choosing an umbrella company to use, a friend of mine recommended me Payerise and I blindly just went with them as she told me she had used them years without issue.
...

[Jssakela]

Hello, just wondering if anyone on here could helps me! I'm currently working under an umbrella company who pay me on the 6th of each month. This month I got paid on the 4th so that it falls within this year. Trouble is, I was already paid my normal wage in this tax month, so I've ended up paying a...