Contractor Tax Solutions

Aft4b

I’m sorry if this has been discussed extensively before but my search didn’t through up any results.

I’ve been a contractor for a few years now and have always operated through my own limited company.

For the last few months I’ve been called constantly regarding a new initiate which allows contractors to take home more than 80% of their earnings. Apparently the big four accountancy firms have also adopted this approach and it’s fully above board and legal.

However, most of the companies that advertise this service tell you what you will and won’t have to do but they don’t actually explain how it works. All I know is that they’re the limited company and you effectively work for them on a self employed basis. They manage all the paperwork etc.

I'm keen to hear from people who are currently using this and those who decided it wasn't for them and why?
Those that are currently on this, how did you go about choosing a company to go with?

chrismac1

Sound like a managed service company operation, or similar agency. Who is calling you? This sector has a lot of cowboys in it, plus some very legitimate high quality operations - so depending on who is calling you the answer to your question can vary from "decent scheme" to "utter tosh".

Aft4b

The company is called Which Commercial Finance. I believe these types of companies are all operating very similar schemes (differences being some charge a one off fee or the level of Take home income they promise - but that is very similar too)

chrismac1

I can see lots of reasons for wariness just by the website:

1. What is their address?
2. Is this a limited company? (Not per companies house.) If not, is it just a one-man band - if not, who are the people involved?
3. They seem to offer wide-ranging services with barely a mention on contractor solutions and no mention whatsoever of IR35 which is not an optional extra, it's essential.

Overall my first impressions are 1 out of 10, potential spiv sniffed out here!