limited companies, thus enabling the ability to be a freelance consultant.
Recently they brought in something called IR35 which basically said that
should your work be deemed to be perceived as being 'under spervision' (so
in effect disguised employment) then you must pay out all your money earnt
through freelancing as income to the individual. (5% of money could be held
back for company running and training). This is very tax inefficient as you
have to pay employers and employees taxes on any salary.
If you fell outside IR35 it is up to you how this money was used within the
company. So a reasonable salary, dividends to shareholders and the ability
to invest money as you see fit :)
Adam
-----Original Message-----
From: Dana Tierney [mailto:[EMAIL PROTECTED]
Sent: 17 October 2003 16:05
To: CF-Community
Subject: Re: Freelancing vs. Home based business
IR=Inland Revenue? I know very little about British taxes.
Adam Reynolds writes:
> I've been lucky to work freelance from home and my company has been
declared
> IR35 exempt which is fantastic news.
>
> It really depends how you get your money.
>
> Adam
> -----Original Message-----
> From: Candace Cottrell [mailto:[EMAIL PROTECTED]
> Sent: 17 October 2003 14:35
> To: CF-Community
> Subject: Freelancing vs. Home based business
>
>
> When does freelance work become a home-based business that you have to
> incorporate, etc? How are taxes different for freelance/odd jobs vs. a
> full-fledged business?
>
>
> Candace K. Cottrell, Web Developer
> The Children's Medical Center
> One Children's Plaza
> Dayton, OH 45404
> 937-641-4293
> http://www.childrensdayton.org
>
> [EMAIL PROTECTED]
>
>
>
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