Just had an unsolicited phonecall and email follow up from Sunday Solutions - I see from a search of the forums that they have been covered here and marked as cold calling spammers - however I thought I'd just bring up some of the scaremongery of the email I just got from them as I'd be interested to hear other's thoughts.
My main point of interest is their claim that apparently tax returns will start asking us if we run 'personal service companies' and how much we make form them - this cannot be so can it?
As far as I know El Gordo's comments about 'artificially incorporating to avoid paying your due share' was aimed as much at eastern europeans as it was at anyone else artificially incorporating.
Can anyone explain what is deemed as 'artificial' about Ltd companies to contract out of?
I'll quote some of the email with the particular points of interest in bold:
I've seen scaremongery used to try and push umbrella services but I think this has hit an all time low - PSC questions on tax returns.... any truth in that at all?
My main point of interest is their claim that apparently tax returns will start asking us if we run 'personal service companies' and how much we make form them - this cannot be so can it?
As far as I know El Gordo's comments about 'artificially incorporating to avoid paying your due share' was aimed as much at eastern europeans as it was at anyone else artificially incorporating.
Can anyone explain what is deemed as 'artificial' about Ltd companies to contract out of?
I'll quote some of the email with the particular points of interest in bold:
General consensus suggests that the way forward for freelancers is to revert to their own Personal Service Company/Ltd Company. Our experienced tax and legal advisors believe that this would be ‘akin to unlocking the door to go back into the dragon’s den’, as HMRC has lost none of its desire to enforce IR35 taxation and will of course, find this easier to apply to ‘one man companies’.
Consider the following statement made by Gordon Brown in his latest budget speech: “But I do need to act to deal with individuals artificially incorporating as small companies to avoid paying their due share of tax.” This is a direct reference to IR35 and many contractors are unaware that there will be two new tick boxes on their next tax returns which will ask 2 direct questions:
1) Are you operating as a Personal Service Company?
2) What is the amount of income derived from the Service Company?
These two questions will automatically place you on the radar for an IR35 investigation, in a manner never before seen. It will ensure that you pay the full amount of tax and NI in accordance with IR35 – 95% of your income could potentially be subject to PAYE with no dividends allowed.
Consider the following statement made by Gordon Brown in his latest budget speech: “But I do need to act to deal with individuals artificially incorporating as small companies to avoid paying their due share of tax.” This is a direct reference to IR35 and many contractors are unaware that there will be two new tick boxes on their next tax returns which will ask 2 direct questions:
1) Are you operating as a Personal Service Company?
2) What is the amount of income derived from the Service Company?
These two questions will automatically place you on the radar for an IR35 investigation, in a manner never before seen. It will ensure that you pay the full amount of tax and NI in accordance with IR35 – 95% of your income could potentially be subject to PAYE with no dividends allowed.
I've seen scaremongery used to try and push umbrella services but I think this has hit an all time low - PSC questions on tax returns.... any truth in that at all?
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