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Should I trade as a Limited Company, umbrella or composite

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    Message back from the CU

    "it should not change anything for us because of the treaty in IoM
    it seems that the corporate tax & NIC are going to decrease slightly, it's good to have a ltd as contractor anyway "

    So that clears that up for the moment. I know these things are changing and I also know that they keep abreast of the changes that come to them by way of the Inland Revenue themselves and not the Contractor UK site.

    Not knocking the site or the info because the more differences of opinion and information we have hopefully a more understood "what we can and cannot do" comes from it.
    Brobi
    Promoting: Complete Contractor as they have helped me!

    Comment


      No, that's not the relevant bit of Government thinking. What you need to worry about is 5.86 of the last PBR:
      The Government believes that all individuals and businesses must pay their fair share of NICs and tax, irrespective of legal form. It will continue to review the tax and NICs systems to ensure that this is the case and will bring forward proposals for discussion that are consistent with simplicity for compliant businesses, support for businesses in their aspirations to grow and maintaining the attractiveness of the UK as a business location.
      There's that 'fair' word again. The intention is clearly that if you have income in this country, regardless of source, you pay UK levels of tax. Now that is the case right now, supposedely, so I wonder why they found it necessary to-re-emphasise this point?
      Blog? What blog...?

      Comment


        Originally posted by brobi
        Bring back the tories!!!
        Only if they scrap IR35 outright and let things return to normality...

        Comment


          Recommendation

          I posted this on this thread once before but it seems to have got lost...

          I felt the best option was to avoid Umbrellas/composites and alike (based on the above nightmare stories) so I looked in to having my own Limited company run by someone else and came across this bunch - www.cakeincome.co.uk
          .... it is working well for me!

          Comment


            Originally posted by mankiemogwai
            I posted this on this thread once before but it seems to have got lost...

            I felt the best option was to avoid Umbrellas/composites and alike (based on the above nightmare stories) so I looked in to having my own Limited company run by someone else and came across this bunch - www.cakeincome.co.uk
            .... it is working well for me!
            "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

            Comment


              Originally posted by mankiemogwai
              I posted this on this thread once before but it seems to have got lost...

              I felt the best option was to avoid Umbrellas/composites and alike (based on the above nightmare stories) so I looked in to having my own Limited company run by someone else and came across this bunch - www.cakeincome.co.uk
              .... it is working well for me!
              Smells like

              Edit: Damn! Would have been quicker but I only use two fingers to type.

              Comment


                Composites and Associated Companies Laws

                Hi all, first time poster, long time reader.

                Work for an accountancy myself, won't mention the name.

                The real problem with composite's now isn't to do with IR35 it's to do with associated companies.

                As you all know, small companies CT is 19%, large companies is 30%. Composites will claim that each ltd company under it is a seperate entity and so it's turnover qualifies for small CT. However the gov has argued successfully twice last year and twice more again this year that all of the ltd companies under the composite are associated because the comp is in control of accounts. Hence the total turnover is vast and qualifies for large CT.

                We took on two guys who were personally liable for £15k in backtaxes due to the 11% shortfall.

                Comment


                  Now that's an interesting comment. And could be interesting if followed to a conclusion - what's the potential tax take on 30,000 users of composites underpaying by 19%, back-dated to December 2004... roughly £950m?

                  I can see the headline now - "Brown initiative recovers £1bn in unpaid taxes". Anyone would think there's an election coming up.
                  Blog? What blog...?

                  Comment


                    Own Ltd vs Composite

                    Hi,

                    I am moving into contracting world. Have two options , start my own Limited or join with a friend of mine as director( he doesn't have one , we want to register it together). I understood from this post that HMRC targets composite companies than own Limited companies.

                    When is a company called as composite ?? When my self and my friend start a company and we both are directors , is that called a composite.?? Or a group of people...

                    My wife will be secretary & his wife as another employee..

                    I want to take a decision based on your opinion.


                    Thansk in advance for your answers.

                    Thanks,
                    Academic

                    Comment


                      What you contemplate is not a composite, which, put simply, is a holding company issuing shares of different classes to individual shareholders such that they can be paid dividends in proportion to the fees they bring in, purely in order to avoid paying NICs on that portion of the income.

                      However, if you don't know that, what else don't you know? Have you got an accountant? I think you need one, quickly...
                      Blog? What blog...?

                      Comment

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