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New VAT rate rules for contractors – changes due to the 20% rate from 4 January 2011
Limited company contractors will be required to change their invoices & VAT return accounting when VAT increases from 17.5% to 20% on 4 January 2011.
…for sales that span the rate change on 4 January: Contracts started before 4 January 2011 and completed after… …, for example, a contractor started work on a new contract on 4 January and submitted an invoice after worki…
Category: Articles: Tax Issues | Wed, 24 Nov 2010

Retrospective tax-reducing strategies for contractors who overpaid in previous years
Contractors can adopt tax strategies that may reduce their tax liability arising from previous financial years, says Abbott Moore’s James Abbott.
…d those who might have temporarily stepped out of contracting to work on a fixed-term employment contract . Abb… …of contracting to work on a fixed-term employment contract . Abbott explains: “As is the case with all contr…
Category: Articles: Tax Issues | Tue, 14 May 2013

Contractor guide to the General Anti-Abuse Rule (GAAR)
Contractors should take into account the General Anti-Abuse Rule (GAAR) when making tax-planning decisions, says James Abbott of Abbott Moore.
…houldn’t be a target. GAAR may become a threat to contracting in 5-10 years But Abbott’s concern is that HMRC h…
Category: Articles: Tax Issues | Thu, 11 Apr 2013

Tax residency rules for individual contractors and contractor limited companies
Contractors and their limited companies are subject to legislation that clarifies their tax residency status, explains James Abbott of Abbott Moore.
…t of time in order that they can deliver on their contracts.” Depending on how many ties a contractor has, an… …xed in the UK. When working on a typical overseas contract where the contractor works from the client’s offi…
Category: Articles: Tax Issues | Wed, 12 Jun 2013

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

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

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

Contractors, directors’ loan accounts and borrowing company money
Contractors usually have no need for a director’s loan, but for those that do, there are strict rules and pitfalls, says Abbott Moore’s James Abbott.
…Contractors can enjoy a long and lucrative contracting career without ever needing to take a director’s… …for professional fees, such as incorporation and contract expenses. “A contractor might find they are in re…
Category: Articles: Limited Companies | Wed, 10 Jul 2013

Contractors publishing their owns books – tax and accounting issues
Contractors self-publishing promotional books shouldn’t publish through their company unless profits will be large, says Abbott Moore’s James Abbott.
…ontractors self-publishing books to promote their contracting services should pay for the project personally an…
Category: Articles: Limited Companies | Tue, 12 Nov 2013

Tax issues of acquiring quality and antique assets
Contractors considering buying high quality or antique assets for their limited companies may discover its more tax efficient to buy it personally.
…warns Abbott. “Many contractors dip in and out of contracting, and shut down the limited company during periods…
Category: Articles: Limited Companies | Mon, 16 Dec 2013