limited or partnership?

[filthy1980]

Hi all,

before i get berated, i have done a search and couldn't quite find specific answers on this topic.

quick summary,

i've set myself up as ltd for a new contract i'm about to begin after being with an umbrella for over a year.

went to see an accountant who was recommended by a friend, and accountant advised that i would probably be better for setting my company up as a partnership rather then a ltd as there are a few more tax breaks that could be exploited.

my question is, is this correct and what implications would it have with agencies paying a partnership company rather then a ltd co?

any advice welcome

thanks

filthy

[Clare@InTouch]

Most agencies will not deal with an LLP (limited liability partnership, which I presume is what he meant), so a bit of a non-starter unless you'll be working without agency involvement.

[brocky]

Clare makes a very good point. I'd be very worried about using a accountant who doesnt have a decent understanding of how our inductry works.

[SueEllen]

WHS

I suggest you go and use another accountant. The PCG has a list of accountants on their website who understand the industry we are in.

[northernladuk]

Clare makes a very good point. I'd be very worried about using a accountant who doesnt have a decent understanding of how our inductry works.

WHS +2. I would certainly be looking around for another accountant. To get the first step wrong god knows what level of help you will get digging in to the details of the option he got wrong.

[filthy1980]

thanks all,

i have a few friends in the contracting game will see who they use

cheers

[SallyPlanIT]

Clare makes a very good point. I'd be very worried about using a accountant who doesnt have a decent understanding of how our inductry works.

Seconded. An LLP is probably not your best way forward, speak to someone with experience in the contractor industry.

[thunderlizard]

Most agencies will not deal with an LLP

Out of interest, why is that? Odd because LLP is a very popular model in the consultancy biz.

[Clare@InTouch]

Out of interest, why is that? Odd because LLP is a very popular model in the consultancy biz.

Because they fear that if the contractor is found to be a disgiused employee, the liability for the tax and NI would fall on them. With a limited company IR35 would apply and any risk is the consultant's alone.

[thunderlizard]

OK. So, yet another example of how the law as written down in law bears little resemblance to the law as imagined in agents' heads.