Hi everyone,
I'm brand new to this so please be gentle
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
I'm brand new to this so please be gentle
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
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