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Who am I?

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    Who am I?

    Ok, admittedly this is probably a stupid question but there goes;

    I am a contractor with my very own limited company. My company pays me the basic personal allowance (£4895) in salary in my capacity as Director, the rest dividends. Heres the question....am I self-employed in the eyes of Inland Revenue for my personal self-assessment, or an employee of my Ltd Company? I am not sure which self-asssessment to complete???

    I am registered on my company payroll, and complete the P35 jazz, so am thinking I complete the self-assessment as an employee, not self-employed.

    Is that a crazy question?

    #2
    Originally posted by zeitghost
    Bet you're not regarded as self employed, whatever... but I'm sure much more switched on members of the congregation than me will be here to advise you soon...
    The giant alien lizard is correct. You fill in the employee section.

    Comment


      #3
      Slightly off topic, but related....

      So should you declare yourself as an employee when applying for loans or mortgage? I guess the problem in these circumstances is the low basic salary?

      Comment


        #4
        Well you have a payroll record with your company which would with hold tax and NI if you paid enough so I think you have your answer - 100% employee.

        You are now seeing the problems with low salary and high dividends. Unless you have a bank manager who knows your account and banking history well you will probably be going down the self certification route which costs more.

        Also (and I know its a contentious issue on here) by paying your self the minimum amount possible before incurring tax you do leave yourself very exposed if you ever get the man from HMRC knocking. PLease tell me you don't split your dividends with the missus or mr!!!

        Comment


          #5
          Originally posted by omen666
          Slightly off topic, but related....

          So should you declare yourself as an employee when applying for loans or mortgage? I guess the problem in these circumstances is the low basic salary?
          Absolutely. You aren't self employed just because you're also the MD of the company you're working for.

          The acid test is: have you registered with your local tax office as self employed and are paying the self employed NI stamp? I suspect not.

          Anyway, if you are a contractor, what are you doing messing around with loans and mortgages? Surely you just waft the Amex Black card and cash in some of the gold reserves to pay the bill?

          On a serious note, when applying for credit cards, I always put down MyCo as my employer (and my name is in the company name), plus my name as the employer's contact. I have never been contacted to confirm the status of my employee (me) yet. Obviously if I were, I would tell them he was a good for nothing so-and-so.
          Last edited by Lucifer Box; 4 October 2005, 08:28.

          Comment


            #6
            You are now seeing the problems with low salary and high dividends. Unless you have a bank manager who knows your account and banking history well you will probably be going down the self certification route which costs more.
            You don't have to go for more expensive mortgages. I've mortgaged/re-mortgaged several times as a contractor, the first time in 1989. I have never had a problem getting the lender to base my mortgage on all my contract income, and have always had mainstream mortgages from mainstream lenders at competitive rates. Usually what they ask for is a letter from my accountant confirming my (i.e. the companies) contract income.
            Last edited by IR35 Avoider; 4 October 2005, 09:42.

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              #7
              Is that because you have over 3 years accounts? I am returning to contracting after 3 years in a permanent job. So the accounts from my previous 5 years contracting dont help.

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                #8
                Try giving www.contractormoney.com a call. I've only been contracting for 5 months and they have just found me a mortgage provider willing to lend me a stupid amount of money at one of the market leading rates.

                Comment


                  #9
                  Originally posted by omen666
                  Is that because you have over 3 years accounts? I am returning to contracting after 3 years in a permanent job. So the accounts from my previous 5 years contracting dont help.
                  Your salary from your permie job would though...
                  Oh Jesus - Disaster Management Ltd.
                  You know you'll need us!

                  Comment


                    #10
                    Nice replys

                    Come on! I'm a contractor - I have no need for things such as mortgages - suitcase of cash is better (and no, I am not Russian).

                    Cheers for the info though.

                    Comment

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