what about partnerships ?

[2uk]

Is there anyone who is contracting IT in a partnership.

According to the link below partherships are taxed as self-emplyed. Is that the same as PAYE ?

Is it true that partnerships are again ( as self-employed) not seen serious by clients ?


http://www.businesslink.gov.uk/bdotg...3859209&r.s=sc

[2uk]

No one would touch a "self employed" contractor.

That's why we all use Ltds...

(or "used" in my case).

I see , thanks !

[The Lone Gunman]

You seem to be asking a lot of questions. Have you considered reading the relevant web site?

As you are new I will forgive you.

I have given a brief history before, but basically we are somewhat the victims of major players. BT started it so they are my representation of major players.
BT set its workforce free and they all came back on Monday as self employed.
Govt. didn't like it so they made corporate clients responsible for non payed self emp taxes.
Major players didn't like this so insisted that all external suppliers had to be businesses.
We all incorporated. Being smart we realised that as Ltd companies we could pay low wage and high divvies and claim all sorts of expenses and tax breaks.
Govt. didn't like this but realised that what ever they did would be unworkable.
Tax man got very annoyed.
NL came to power and listened to tax man.
NL invented IR35.
We started bobbing and weaving.
<loop until someone comes up with a sensible solution>
Govt. invented new legislation.
We keep ducking and diving.
</end loop>

NL are now trying to make anyone in the food chain responsible for unpaid tax. Bottom line is BT and soon agents won't touch anyone who is not on someones PAYE scheme or Ltd.

If any of that is wrong then Malv or Den will correct it.

[2uk]

You seem to be asking a lot of questions. Have you considered reading the relevant web site?

As you are new I will forgive you.

I have given a brief history before, but basically we are somewhat the victims of major players. BT started it so they are my representation of major players.
BT set its workforce free and they all came back on Monday as self employed.
Govt. didn't like it so they made corporate clients responsible for non payed self emp taxes.
Major players didn't like this so insisted that all external suppliers had to be businesses.
We all incorporated. Being smart we realised that as Ltd companies we could pay low wage and high divvies and claim all sorts of expenses and tax breaks.
Govt. didn't like this but realised that what ever they did would be unworkable.
Tax man got very annoyed.
NL came to power and listened to tax man.
NL invented IR35.
We started bobbing and weaving.
<loop until someone comes up with a sensible solution>
Govt. invented new legislation.
We keep ducking and diving.
</end loop>

NL are now trying to make anyone in the food chain responsible for unpaid tax. Bottom line is BT and soon agents won't touch anyone who is not on someones PAYE scheme or Ltd.

If any of that is wrong then Malv or Den will correct it.

I love when people can explain complex stuff in a simple manner. Not everyone here can do that.

I read the PCG guide ( after hours ) cos i was told to shutup the first time i asked somethin, so now i am not that barefooted.

I also see that you are a programmer, I'm in infrastructure but looks like many folks here are in IT.


The reason for askin for the Partnership was somewhat different and i might start a separate thread soon. It's because I am concerned about growing the business. Once i start contracting and beat the **** out of me of studing/working/managing a company/traveling to work/cleaning the home/loundry/cooking etc , i want to have a Ray of light in the tunnel so that i dont die emotionally.

By growing I mean things like:

-Combining with other contractors
-going .com
-Hiring Employees.

i.e growing.

If I am to work on different projects all the time , I'd want to maintain these relationships .... cos u know - a man alone cannot do it. ( except 1 thing

[lith]

Not sure how nessecary it is legally but at least if you're in a partnership you're in a better position to genuinely be able to come up with a substitute (re IR35/substitution clause)

I'm thinking about the whole partnership thing cuz I'm having problems coming up w/ a name I'd like to use...

[2uk]

Not sure how nessecary it is legally but at least if you're in a partnership you're in a better position to genuinely be able to come up with a substitute (re IR35/substitution clause)

I'm thinking about the whole partnership thing cuz I'm having problems coming up w/ a name I'd like to use...

me 2

[ASB]

Is there anyone who is contracting IT in a partnership.

According to the link below partherships are taxed as self-emplyed. Is that the same as PAYE ?

Is it true that partnerships are again ( as self-employed) not seen serious by clients ?


http://www.businesslink.gov.uk/bdotg...3859209&r.s=sc

No, it's not the same. Broadly as S/E you pay income tax on profits after chargeable expenses and allowances. You also pay NI in a similar way - buy employers NI is not payable (although there is different sort of NI to pay as well). Full details on the IR web of course.

You would be a bit better of as S/E than under PAYE but the regime is not as benign as an exploiting the corporate regime when outside IR35. Of course if nobdy will use your services due to the risks placed on them by the companies act then the point is moot anyway.

Regarding partnerships you might consider looking at LLP's. The possibility exisits that these might be viewed a little more favourably and it may be possible to operate through an LLP and an agency - but frankly I doubt it.

[2uk]

No, it's not the same. Broadly as S/E you pay income tax on profits after chargeable expenses and allowances. You also pay NI in a similar way - buy employers NI is not payable (although there is different sort of NI to pay as well). Full details on the IR web of course.

You would be a bit better of as S/E than under PAYE but the regime is not as benign as an exploiting the corporate regime when outside IR35. Of course if nobdy will use your services due to the risks placed on them by the companies act then the point is moot anyway.

Regarding partnerships you might consider looking at LLP's. The possibility exisits that these might be viewed a little more favourably and it may be possible to operate through an LLP and an agency - but frankly I doubt it.

I am just lookin for the best scheme that is not less preferable to clients (compared to a Ltd). However one that is a flexible way for me and other fellow contractors to work under a common company, but so that the reveneue is distibuted according to how much job each partner has done.

[malvolio]

I am just lookin for the best scheme that is not less preferable to clients (compared to a Ltd). However one that is a flexible way for me and other fellow contractors to work under a common company, but so that the reveneue is distibuted according to how much job each partner has done.

Go Google for Innovos....

But consider -five of you in a partnership, one of you does little work in a year compared to the others for any one of a dozen reasons - how much do you pay him?

Or, you build up £250k profits in a year or so and one of you gets a permie job. How much does he take away, or how much does he pay to leave...?

Much much safer to have a collaboration of five separate companies at the kind of level we work at. Building a "proper" company needs to start from a different point.

[2uk]

Go Google for Innovos....

But consider -five of you in a partnership, one of you does little work in a year compared to the others for any one of a dozen reasons - how much do you pay him?

Or, you build up £250k profits in a year or so and one of you gets a permie job. How much does he take away, or how much does he pay to leave...?

Much much safer to have a collaboration of five separate companies at the kind of level we work at. Building a "proper" company needs to start from a different point.

Well , TimeSheets can be mandatory , and the payment can be based on the time worked on. I'd love to start smth. like that , any fellas ?


"Collaboration of separate companies" - Do you basically refer to friendship that form between contractors - as they help each other find work ?

Are you referring to http://www.innovos.co.uk/ ? The site seems down. That's exactly what i had in mind, looks they are already doing it. Is it an Ltd or a partnership ?