Tax burden of Contractor as Ltd Co.

Fulham_Mark

Personally, my attitude is that my daily rate covers me for illness and accidents.

This is helpful as it stops me worrying when these things happen, I expect to take 20 days holiday, have 4 days sick and also spend 4-6 weeks not earning but obtaining work.

2 years ago I had a cycle accident that cost me £1600 in lost earnings and last year I had 4 days when I couldn't work due to tonsilitis. I wouldn't insure myself against it.

Allow for these in your earnings calculations. I reckoned on £275 a day being equal to about £45k permenant once you had factored everything in. Above £400 a day you are laughing but the middle ground is risky.

Thanks for the advise on dividends being paid less frequently.
Will do.

Fulham_Mark

oh one more thing I was told...

Your company is registered at your home. Contracts you win probably require you to work at client's premises however it is important that you maintain your office at the registered address. Tax is very different if all you do is travel to a work-place every day and use their equipment.

I have converted part of the dining room into a proper office area, when I go to client offices I work on my own PC which I bought when starting the company and with fully licensed software on it.

Should they feel in the mood, the Inland revenue could also visit you at the registered address too at short notice and would raise theire eyebrows if it was clear that you could never actually work from here.

sunshinetours

Fulham_Mark wrote: »

oh one more thing I was told...

Your company is registered at your home. Contracts you win probably require you to work at client's premises however it is important that you maintain your office at the registered address. Tax is very different if all you do is travel to a work-place every day and use their equipment.

I have converted part of the dining room into a proper office area, when I go to client offices I work on my own PC which I bought when starting the company and with fully licensed software on it.

Should they feel in the mood, the Inland revenue could also visit you at the registered address too at short notice and would raise theire eyebrows if it was clear that you could never actually work from here.

Sorry don't agree - the registered office quite often is the accountants or solicitors office for many companies and has no bearing on the trading address.
You also have no requirement to allow the Revenue to visit you if you do not wish to on investigations