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False Self-Employment legislation - explained
Most contractors should remain outside of the False Self-Employment legislation, which is mainly targeting self-employed sole traders.
…g themselves via a salary or deemed payment under IR35 are also receiving employment income, so they too… …under obligation to provide personal services The contract is via a third party agency contract The worker i…
Category: Articles: False Self Employment | Wed, 21 May 2014

How National Insurance Contributions (NICs) are calculated
Contractors may be liable to pay National Insurance Contributions (NICs). Calculating how much should be paid depends on the nature of their earnings.
…Most limited company contractors working outside IR35 pay little or no NICs because they pay themselves… …agency payroll and those on fixed-term employment contracts do. Unlike income tax, NICs are only applied to a… …cy payroll and those on fixed-term employment contract pay NICs Class 1 NICs rates for the 2013/14 tax y…
Category: Articles: Tax Issues | Thu, 02 May 2013

Spending contractor limited company profits tax efficiently
According to Duncan Strike of Quay Accounting, contractors should be looking closer to home when deciding how to spend the cash in their business.
…for which contractors should put aside money, is IR35 . As he says, “We all know that contractors’ past… …found to be within IR35 for one of their previous contracts, the fallout can be very costly . If there is any… …te sums for tax, and unexpected periods without a contract, Strike says there can still be plenty of cash le…
Category: Articles: Limited Companies | Mon, 09 Mar 2009

How to charge expenses back to your client
Have you incurred expenses that need charging back to your client?
…should include VAT. If your contract is caught by IR35, then the expenses reclaimed will form part of th… …d from the client and should include VAT. If your contract is caught by IR35, then the expenses reclaimed wi…
Category: Articles: Expenses | Fri, 07 Dec 2007

Contracting and subcontractors: tax, VAT and employment issues
Contractors subcontracting client work to other contractors should be aware of the tax, VAT and employment issues, says James Abbott of Baker Watkin.
…reclassification of employment status because of IR35 must be paid by the subcontracted contractor. Thi… …added tax ( VAT ). “A contractor may be earning a contracting income that keeps them just below the VAT registr… …ing the law.” Other factors: employees’ expenses, contracts and the ‘hassle factor’ Although there are no rul… …frequently no written agreement. Putting a proper contract in place is essential. It should be prepared by a…
Category: Articles: Limited Companies | Mon, 30 May 2011

Contractor guidance on record keeping for HMRC’s Business Record Checks
Contractors can easily ensure their records are in good order if HMRC undertakes a Business Records Check, says InTouch Accounting’s Paul Gough.
…rn (PAYE) compliance review, and possibly also an IR35 investigation.” Gough’s good recordkeeping checkl… …good business practice that support a successful contracting career. HMRC has a team of 120 specialists that i…
Category: Articles: Limited Companies | Mon, 21 Nov 2011

Extracting profits tax efficiently from a limited company
Contractors can choose from a range of strategies to extract profits tax efficiently from their limited company, explains Abbott Moore’s James Abbott.
…Most limited company contractors working outside IR35 pay themselves a low salary and the balance of th… …– if they are not doing so, they should move to a contract that is outside IR35 Decide on a suitable salary…
Category: Articles: Limited Companies | Wed, 30 Jul 2014

Backdating dividend payments to a previous tax year is asking for trouble
Proper tax planning negates the need to backdate dividends, which is illegal and attracts unwanted attention from HMRC, says Intouch’s Duncan Strike.
…ake from the company, whether they will be within IR35 and what the salary/dividend split will be if the… …s Whilst it is quite commonplace for directors of contracting companies to declare a dividend and leave the mon…
Category: Articles: Limited Companies | Thu, 02 Jun 2016

Company healthcare and gym membership benefits
You can pay for healthcare costs and gym expenses using your limited company although there will be a BIK charge - Find out more.
…ent sports facilities or onsite gyms come with an IR35 health warning “If a contractor has free use of a…
Category: Articles: Expenses | Fri, 06 Jan 2017

Contracting, subcontractors and AWR: when do the Agency Workers Regulations apply?
Contractors subcontracting client work to other contractors may find the Agency Workers Regulations could apply.
…is a very different test from those applied under IR35 . Subcontractors who qualify as out of scope The… …kers.’ And an agency worker ‘is someone who has a contract with the temporary work agency but works temporar…
Category: Articles: Agency Workers Regulations | Tue, 15 Aug 2017