need clarification about NIC's

[northernladuk]

Is it possible that I have unwittingly set myself up as a LTD Company ? and that's the reason they have asked for VAT Registration Certificate.

LOL you can't make this up.

[Scruff]

Suicide is painless...

Suicide Is Painless (MASH Theme) with lyrics - YouTube

[billyd]

LOL you can't make this up.

For someone with over 14,000 posts I really don't find your replies helpful and if all your going to do is laugh then please refrain from posting.

What I should have explained from the beginning, is I'm posting on behalf of my husband who has buried his head in the sand to the point of us now not being on speaking terms so I'm trying to find the best solution whereby he's paying his tax and national insurance correctly, I'm sorry if I'm not using the correct terminology for your liking.

If you can provide any useful answers or if you need me to clarify things then I'm quite happy to do so.

[SueEllen]

He's laughing at you and some of us are rolling our eyes because we can't believe someone would sign contracts without reading and understanding them.

You can be VAT registered as a sole trader.

I strongly suggest you do what Lisa from Contractor Umbrella has told you to do in previous posts.

[Craig at Nixon Williams]

From your first post, I can’t really tell how it is that you are currently working (umbrella/ltd company/offshore scheme) so can’t really give much advice without knowing more. If you are having 20% deducted at source, are you on the CIS scheme perhaps?

I would echo Lisa’s advice that you need to steer clear of offshore loan schemes as the chances are that HMRC will come back and bite you over these later on.

I’d suggest that you speak to somebody to explain your situation first of all as they can ask you the right questions to gain an understanding of your situation. You can ask them to put their advice to you in writing for you to go over if you are hesitant about doing this sort of thing over the phone.

Hope this helps!
Craig

[GazCol]

Does your husband work in construction?

[northernladuk]

For someone with over 14,000 posts I really don't find your replies helpful and if all your going to do is laugh then please refrain from posting.

What I should have explained from the beginning, is I'm posting on behalf of my husband who has buried his head in the sand to the point of us now not being on speaking terms so I'm trying to find the best solution whereby he's paying his tax and national insurance correctly, I'm sorry if I'm not using the correct terminology for your liking.

If you can provide any useful answers or if you need me to clarify things then I'm quite happy to do so.

The problem is you are in a very complicated situation which appears (to me at least) you don't fully have a grasp of. You are then trying to communicate this skewed situation to a bunch of strangers who are trying to make out the situation and then offer advice. So you see it's hardly ideal. If people can help they will need exact details of the situation, not guestimates or 'we might have done' I am afraid. To say you were employed by an agent and did we accidentaly set up a LTD etc just makes it nigh on impossible to advice. We don't know. Getting a clearer picture of your own situation might actually make the answer a lot simpler.

I would go back to T and L and ask them exactly what the situation is. No good asking us if you are employed by someone. You said you were employed by them but they suggested you got an umbrella. That would mean you are employed by the Umbrella and contracted to T and L. Did you sign up to an Umbrella. Are T&L doing your wages (wage slips, tax code etc etc) or just paying you money from the contract. You have to know these things before we can help.

[LisaContractorUmbrella]

Hi Lisa, yes I have signed a contract with them, I think I've been very stupid. The last paragraph of my contract says this

This contract is entered into with your company on the understanding that you are operating in business on your own account, and that having considered your position and taken advice you are satisfied that you outside of the difiniton of a "worker" or "agency worker" as defined in Regulations 2 and 3 of the Agency Workers Regulations 2010, and that you fall outside of IR35. You are required to sign a declaration to this efect as part of the Contract Confirmation Documentation enclosed with this letter.

Is it possible that I have unwittingly set myself up as a LTD Company ? and that's the reason they have asked for VAT Registration Certificate.

No, you can't set up a Ltd Co unwittingly. What you have done though is to sign a contract which enables the company you have registered with to abdicate any responsibility for your taxes. If you are working with a recruitment agency, they can't work with sole traders so they would expect you to set up your own Limited Company or work with an umbrella company. This agency seem to have directed you to a company that is operating some sort of tax avoidance scheme - an umbrella company should take you on as an employee and will pay you through PAYE - they shouldn't take a part of your earnings and then pay you gross.

If I were you I would set up a Ltd Co and register with a decent accountant or join a PAYE umbrella company and I would also calculate what tax you already owe so that you can put it aside to be paid at a later date.

[northernladuk]

Oh, and I know it's hard but your husband is going to have to pull his head out of the sand. It sounds like you could be in breach of contract with T&L if they expect you to be a company and you are not which could have your husband walked out of the gig. If you are going to go down LTD company route the director has a legal responsibility to do all this and not stick heads in sand.

[SueEllen]

billyd I suggest you contact either or both Contractor Umbrella (umbrella company) or Nixon Williams (accountants) - google for their details and explain your situation. One of them will help you get out of the mess you are in.