Considering contract work, what's changed.
Discussion
In a nutshell please. I was a contractor many moons ago, just before IR35 came in and since then i haven't really paid much attention.
I'm wading my way through contractor uk website at the moment but it's a scary place!
Should I go with a ltd. Company from the get go? What about tax and appointing shares and secretary etc, is this require?
I want to take home as much as possible, but stay on the right side of the tax man as much as possible.
Happy to discuss over email with anyone who is versed in it all if easier.
Thanks in advance.
David.
I'm wading my way through contractor uk website at the moment but it's a scary place!
Should I go with a ltd. Company from the get go? What about tax and appointing shares and secretary etc, is this require?
I want to take home as much as possible, but stay on the right side of the tax man as much as possible.
Happy to discuss over email with anyone who is versed in it all if easier.
Thanks in advance.
David.
IR35 is still around. Indeed, the situation is probably clearer than it was 10 years ago as there have been a number of tax cases which have helped define more clearly where the risks are.
The old 1985 Companies Act has been replaced by the 2006 Companies Act. For small limited companies, the 2006 Act by and large simplifies matters. You can now have a single shareholder/single director company. Small companies no longer need to appoint a Company Secretary either.
The Memorandum and Articles of small limited companies has been much simplified with the abollition of the old "Objects Clause i.e. a small limited company does not have to set out in detail what it does in the Memorandum and Articles of Association.
Some problems with the 2006 Act are beginning to emerge - such as lack of clarity as to what "Advances to a director" really means in the context of "Directors' Loan Accounts".
The old 1985 Companies Act has been replaced by the 2006 Companies Act. For small limited companies, the 2006 Act by and large simplifies matters. You can now have a single shareholder/single director company. Small companies no longer need to appoint a Company Secretary either.
The Memorandum and Articles of small limited companies has been much simplified with the abollition of the old "Objects Clause i.e. a small limited company does not have to set out in detail what it does in the Memorandum and Articles of Association.
Some problems with the 2006 Act are beginning to emerge - such as lack of clarity as to what "Advances to a director" really means in the context of "Directors' Loan Accounts".
I don't know what area you work in but you may find that few, if any, firms will deal with sole traders so you'll be forced to operate as a limited company. Look at joining the Professional Contractors Group:
http://www.pcg.org.uk/cms/
Look through the website & see if it might be relevant. They have a free Guide to Freelancing you can download which will give an idea of what to look out for. If you join you get access to draft contracts which can be useful if you can get your potential clients to accept them.
http://www.pcg.org.uk/cms/
Look through the website & see if it might be relevant. They have a free Guide to Freelancing you can download which will give an idea of what to look out for. If you join you get access to draft contracts which can be useful if you can get your potential clients to accept them.
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