Special Case PAYE/Composite Co Question

[MagicMan]

Scenario:
Working for 16 weeks only per financial year (i.e. the reminder of 06/07) at an hourly rate of
£40 (Composite Company usage) or £36 (PAYE contract) and 40h per week.

No other income is generated during that year.
No expenses are claimed.

Question:
What is the better choice: PAYE contract or Composite Company with base salary and dividends? The Comp Co option is likely outside IR35 but nothing is ever 100% sure, is it;-)

[MagicMan]

Scenario:
Working for 16 weeks only per financial year (i.e. the reminder of 06/07) at an hourly rate of
£40 (Composite Company usage) or £36 (PAYE contract) and 40h per week.

Addon:
Following this period I will be operating through a Composite Co or run a Ltd Co solution expected to be outside of IR35.

Is there any benefit from starting the Ltd Co this FY or waiting until April considering that this year is a low tax rate year?

Is there a free software or online tax calculator that lets me calculate such special cases? The ones I have seen did not allow to specify number or working weeks for PAYE calculations..

[Sockpuppet]

Start your own Ltd co. They dont have to be started at financial ye. In the first year you can choose to have a 6 month - 18month financial year to bring it into line with Tax Year if you really want but its not really that important.

Simple answer: Ltd Co = more money to you.

[Nixon Williams]

I agree with Sockpuppet, you will keep more through your own limited company. Composite comparisons are often inflated with false expenses and so not realistic.

Alan

[Waldorf]

I agree with Sockpuppet, you will keep more through your own limited company. Composite comparisons are often inflated with false expenses and so not realistic.

Alan

Been there, done that, in fact doing that!! must do something about setting up a company again!!