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Smartie Driver
30th November 2012, 15:49
Hi everyone,

I'm brand new to this so please be gentle :wink

I've always been in employed work, until I was made redundant earlier this year. I've now been offered a contracting position, but there seems to be so much conflicting information out on the web.

I have a meeting next week with the agency and they want to know at that point if I want to use an umbrella company or my own Ltd Co......

Apparently the contract is "IR35 friendly" and so I gather that the Ltd Co is the most tax efficient option - can anyone confirm this, please?

Also, I understand I would draw a minimum salary (to the tax bracket only) and take the rest as dividends - can one draw dividends on a monthly basis? Or does it have to be the end of the year - in which case I couldn't afford to take this option as I need to meet monthly outgoings. Also I need to pay tax on the dividends I understand....????

And finally (for now) I will obviously pay Corporation tax on the profits of the business - can I claim the cost of the train travel to London each day as a business expense?

If anyone can help me out, or point me in the direction of a factually accurate and layman's term guide to all of this, I would be most appreciative.

Many thanks

Support Monkey
30th November 2012, 16:43
Hi everyone,

I'm brand new to this so please be gentle :wink

I've always been in employed work, until I was made redundant earlier this year. I've now been offered a contracting position, but there seems to be so much conflicting information out on the web.

I have a meeting next week with the agency and they want to know ause t that point if I want to an umbrella company or my own Ltd Co......

Apparently the contract is "IR35 friendly" and so I gather that the Ltd Co is the most tax efficient option - can anyone confirm this, please?

Also, I understand I would draw a minimum salary (to the tax bracket only) and take the rest as dividends - can one draw dividends on a monthly basis? Or does it have to be the end of the year - in which case I couldn't afford to take this option as I need to meet monthly outgoings. Also I need to pay tax on the dividends I understand....????

And finally (for now) I will obviously pay Corporation tax on the profits of the business - can I claim the cost of the train travel to London each day as a business expense?

If anyone can help me out, or point me in the direction of a factually accurate and layman's term guide to all of this, I would be most appreciative.

Many thanks

dividends can be paid daily weekly monthly yearly, as long as the money is there to pay out

travel is a business expense and can be claimed

Support Monkey
30th November 2012, 16:46
If anyone can help me out, or point me in the direction of a factually accurate and layman's term guide to all of this, I would be most appreciative.

Many thanks

Eyes left: First timers

northernladuk
30th November 2012, 17:35
Eyes left: First timers

Erm... eyes left????

malvolio
30th November 2012, 18:06
Erm... eyes left????
Depends which way you're facing... :igmc:

@OP - Two guides to read, the one somewhere on this page and the Guide to Freelancing at www.pcg.org.uk (http://www.pcg.org.uk). You have no idea how much you don't know, so have a good study of both, then ask questions.

BrilloPad
30th November 2012, 20:09
Hi everyone,

I'm brand new to this so please be gentle :wink

I've always been in employed work, until I was made redundant earlier this year. I've now been offered a contracting position, but there seems to be so much conflicting information out on the web.

I have a meeting next week with the agency and they want to know at that point if I want to use an umbrella company or my own Ltd Co......

Apparently the contract is "IR35 friendly" and so I gather that the Ltd Co is the most tax efficient option - can anyone confirm this, please?

Also, I understand I would draw a minimum salary (to the tax bracket only) and take the rest as dividends - can one draw dividends on a monthly basis? Or does it have to be the end of the year - in which case I couldn't afford to take this option as I need to meet monthly outgoings. Also I need to pay tax on the dividends I understand....????

And finally (for now) I will obviously pay Corporation tax on the profits of the business - can I claim the cost of the train travel to London each day as a business expense?

If anyone can help me out, or point me in the direction of a factually accurate and layman's term guide to all of this, I would be most appreciative.

Many thanks

Hi Smartie :wave:

A very warm welcome - I hope you will be very happy here.

Assuming you intend to contract for more than a few months than ltd is the way to go.

Don't take divs too frequently - the most I have ever risked is 5 a year. Too many and it looks like salary. Though techincally you can pay a div every day.

You can claim travel.

Be wary before venturing into general - its not a nice place there. The only sign of cricket will be when someone clouts you over the back of the head with a bat.

Very best of luck and let us know how you get on.

BP

pmeswani
1st December 2012, 10:23
Be wary before venturing into general - its not a nice place there. The only sign of cricket will be when someone clouts you over the back of the head with a bat.

BP

Apparently Radiator men and Gladiators live there too.

BrilloPad
1st December 2012, 20:29
Apparently Radiator men and Gladiators live there too.

Very true. Best to hide behind the sofa.

General is an evil cess pit that would turn a priest into a swearing abusing insulting rabid troll. Everyone pretends to be some sort of Jack Reacher wheras they are more like a jack in the box.

Asper A Gus
11th December 2012, 12:44
Very true. Best to hide behind the sofa.

General is an evil cess pit that would turn a priest into a swearing abusing insulting rabid troll. Everyone pretends to be some sort of Jack Reacher wheras they are more like a jack in the box.

I wont bother going there then.