I am one of the many contractors who 'work' at one of the big Banks who have done a blanket contract assessment of 'caught by IR35' come April.
Basically we have been told that we must switch over to PAYE either with my agency or one of a few select Umbrella companies. However, luckily one of the Umbrella's allow Pension Sacrifice (thank the Lord).
Therefore the plan is :
Carry on as usual using my Ltd Company until 1st March.
Luckily I have not paid anything in my Pension this current tax year ... unlike the previous years.
1st March I switch to the Umbrella. However I don't intend to actually invoice for March until April.
Come April I am going to tell the Umbrella to pay everything into my pension (ie. Pension Sacrifice) ... this means I can pay £40k into pension for 2020-21 and when this has been done also pay in another £40K for the current tax year (2019-20). That means £80k into Pension without paying any deductions at all ... the only small fees I need to pay are to the Umbrella Company. After the £80k has been paid in then I will then have no choice but to go PAYE and pay the taxes (Employer, Employee NI etc.)
However this leaves me with the question as what to do with money in the Company Bank Account. I want to close the Company as quickly as possible and obviously pay as little tax as possible. I am therefore very likely to go down the MVL route (Members Voluntary Liquidation - MVL | Contractor UK). I think I will need to act quickly as this looks like something HMRC will try and close down as quickly as possible as I would wager thousands of contractors will also be going down the MVL route.
Has anybody on here had any experiences of using Beacon http://mvlsrus.co.uk)? They seem to give the impression that they can close the company down quickly (24 hours if needed) and only charge about £2K. Seems too good to be true.
Basically we have been told that we must switch over to PAYE either with my agency or one of a few select Umbrella companies. However, luckily one of the Umbrella's allow Pension Sacrifice (thank the Lord).
Therefore the plan is :
Carry on as usual using my Ltd Company until 1st March.
Luckily I have not paid anything in my Pension this current tax year ... unlike the previous years.
1st March I switch to the Umbrella. However I don't intend to actually invoice for March until April.
Come April I am going to tell the Umbrella to pay everything into my pension (ie. Pension Sacrifice) ... this means I can pay £40k into pension for 2020-21 and when this has been done also pay in another £40K for the current tax year (2019-20). That means £80k into Pension without paying any deductions at all ... the only small fees I need to pay are to the Umbrella Company. After the £80k has been paid in then I will then have no choice but to go PAYE and pay the taxes (Employer, Employee NI etc.)
However this leaves me with the question as what to do with money in the Company Bank Account. I want to close the Company as quickly as possible and obviously pay as little tax as possible. I am therefore very likely to go down the MVL route (Members Voluntary Liquidation - MVL | Contractor UK). I think I will need to act quickly as this looks like something HMRC will try and close down as quickly as possible as I would wager thousands of contractors will also be going down the MVL route.
Has anybody on here had any experiences of using Beacon http://mvlsrus.co.uk)? They seem to give the impression that they can close the company down quickly (24 hours if needed) and only charge about £2K. Seems too good to be true.
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