On Tue, 20 Mar 2001, you wrote:
> ----- Original Message -----
> From: "Robin Szemeti" <[EMAIL PROTECTED]>
> To: <[EMAIL PROTECTED]>
> Sent: Tuesday, March 20, 2001 3:06 PM
> Subject: Re: Matt's Scripts Projects
> > On Tue, 20 Mar 2001, you wrote:
> > apart from that the benfits of running as a Limited Company are large
> > (ish) assuming you can escape from the clutches of IR35. by careful
> > handling of the way you do things your overall tax and NIC burden can be
> > 'effectivley managed' and you should see 80~85% of what you earn actually
> > ending up in your pocket.
> but iosn;t the same true when acting as a Sole Trader ? You still invoice
> people as you would as a Limited Company (I asked an accountant friend of
> mine for advice and he suggested I go with Sole Trader which is why I'm
nope nothing like.
as sole trader all monies received (- expenses) are treated as income ..
thus you pay NIC on the whole lot .. tax at 23% or whatever up to 30K and
then tax at 40% above 30k(ish).
as a employee of a limited company you would be paid national minimum
wage (4 quid an hour) .. you pay NIC and tax on that ... (minimal) .. you
claim expenses off the (ie your own) company for all the driving around
you do and having to buy things and accomodation whilst away from home etc
... and whats left in the company coffers is profit. This has advance
corporation tax paid at 20% and ends up in the pockets of the
shareholders as tax free income upto 30K each a year .. and if the share
holders happen to be say, you and your wife then thats a cute way of
getting 70K from a contract into your pockets and only paying ~ 15% tax
overall on it ... now do you see why they introduced IR35 as a way of
trying to stop it .. ;)))
The box said "requires windows 95 or better"
So I installed Linux!