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Contractor tax avoidance schemes – understanding the benefits and risks
Contractors entering into tax avoidance schemes might find that they work, but there can be many pitfalls, as James Abbott of Abbott Moore explains.
…s, this is not an issue. But Abbott has seen many contracts from clients that stipulate no offshore entities… …s are particular about the entity with which they contract. For regular limited company contractors, or umbr…
Category: Articles: Tax Issues | Thu, 03 Jul 2014

Marginal tax rates explained - how much tax you pay
You pay very different marginal tax rates depending on your earnings and business/personal circumstances.
…However, if the spouse has their own income from contracting or other sources, they may also fall into the sam…
Category: Articles: Tax Issues | Wed, 15 Sept 2021

Contractor tax: limited company and personal taxes explained
Depending on how you structure your finances and your status will depend on the type and level of taxes you need to pay.
…is registered for VAT (which the vast majority of contracting companies are), then you will need to charge VAT… …through PAYE (on the low salary). On IR35 exempt contracts, you will receive dividends. The dividends are ta… …If you decide to contract via your own limited company the amount of tax yo…
Category: Articles: Tax Issues | Fri, 09 Feb 2018

Contractors’ guide to VAT
VAT is a contractor’s best friend if treated right, or worst enemy unless care is taken to keep to the rules. Here’s how to keep the VAT-man happy.
…Contractors who work through their own contracting limited company can potentially save a significan… …y that is not registered for VAT and only used on contracts with clients who cannot reclaim VAT, so that the… …VAT registration a disadvantage? Contractors who contract directly with their clients, rather than an agenc…
Category: Articles: Tax Issues | Wed, 07 Mar 2018

Section 660. will it cost you £42,000?
Discusses the cost of Section 660 to the contractor.
…t themselves against IR35 by having IR35-Friendly contracts. HMRC then looked at the working practices, which…
Category: Articles: Section 660 | Fri, 20 Jun 2003

Section 660a - minimising an inspection and potential penalties
Advice and guidance for avoiding the 'husband and wife’ tax.
…an inspection and penalties .] If you are new to contracting you will need to decide on a payment structure to…
Category: Articles: Section 660 | Wed, 14 Sept 2005

What is section 660?
What is Section 660? An overview of the legislation and how it affects contractors.
…ly recently been applied aggressively against the contracting industry as part of an ongoing campaign by HMRC a… …partners. What if you are caught by IR35? If your contract falls within IR35 and all income is paid by salar…
Category: Articles: Section 660 | Wed, 13 Dec 2006

Contracting and Personal Liability Notices (PLNs) from HMRC: a contractor guide
Contractors whose limited company has unpaid NICs can be found personally liable if HMRC believes the debts arose through directors’ neglect or fraud.
…the case of IR35, a contractor might seek an IR35 contract review from an expert who suggests that the contr…
Category: Articles: Tax Issues | Thu, 28 Apr 2011

Contractor guide to tax credits from HMRC: working tax credit and child tax credit
Contractors can qualify for tax credits from HMRC and should submit a claim in case their income unexpectedly falls, says Abbott Moore’s James Abbott.
…rwork. “Many contractors could spend their entire contracting career without ever qualifying for tax credits,”… …income drops, say for an extended period between contracts or on the birth of a new child. Eligibility crite… …ny, rather than a client. “Searching for the next contract opportunity, networking, checking job boards, app…
Category: Articles: Tax Issues | Mon, 08 Aug 2011

Contractor guide to negotiating personal tax payments on account with HMRC
Contractors experiencing a sudden fall in income might need to reduce their payments on account with HMRC explains James Abbott of Abbott Moore.
…ddenly, perhaps due to a prolonged period between contracts, or a rental property being empty, the payment on…
Category: Articles: Tax Issues | Wed, 14 Dec 2011