Going from PAYE to Ltd. Co.

RayWolfe

oldnick wrote:

We are already one of the higest taxed countries in the world.

What?
Do you honestly belive that?

oxocubes

RayWolfe wrote: »

Well if you're little company is only in existence to avoid tax that the rest of us will have to pay extra to subsidise, I hope he does.
If, on the other hand you have set up some enterprise to make goods or supply a service that has a chance of blooming into a worthwhile company employing people and paying tax, then I hope he doesn't.

So you have no objection to large companies making excessive profits and paying a pittance in tax because they are part of the establishment that makes our tax laws. I remember a few years ago a company reporting profits of £10 million and paying £10 in tax - is that fair?

I have recently been offered a very good job by a company that refuses to employ paye people, so I have been forced to start a ltd company. Looks like I will make 30% more on take home pay - luvverly jubbly.:D :j

Why not try it yourself?

RayWolfe

oxocubes wrote: »

I have recently been offered a very good job by a company that refuses to employ paye people, so I have been forced to start a ltd company. Looks like I will make 30% more on take home pay - luvverly jubbly.:D :j

I hope that you have asked all the right questions about this. If you have a job you must be subject to PAYE. If you have a company you must be free to do what you want, when you want. See the R&C's note on "Employed and Self Employed"

exil

oldnick wrote: »

Not so long ago a high court Judge said it was the duty of every person to minimise their tax bill.

Tax avoidance therefore can be seen as good. Tax evasion on the other hand is not.

Just because you choose to work in a PAYE environment, don't carp at those that choose not to.

We are already one of the higest taxed countries in the world. Do you think that we get value?

If you look at the millions of pounds wasted for example in the NHS purely because of political dogma, you may not feel that the government is spending your taxes wisely.

To anyone that can find a way of reducing the amount taken by the Robber Baron, Gordon Brown, all I can say is Well Done. Let us all into the secrets.

We are one of the highest taxed countries in the world. But then the highest taxed countries in the world are the richest ones, Japan, USA, Canada, European countries. Not sure low taxes are much to boast about, Mexico has very low taxes yet millions of people are trying to get out of it into the comparatively high-tax USA.

Whatever the problems of the NHS it costs us far less than the US medical "system" does. In fact US taxpayers pay more tax on health care than we do, and have to pay health insurance on top.

If someone can reduce their tax bill by becoming "self-employed" without in reality changing their status, then that's a scam.

cash99

RayWolfe wrote: »

Quote:
Originally Posted by oldnick
We are already one of the higest taxed countries in the world.

What?
Do you honestly belive that

http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP

Based on the above the UK is has the 12th highest tax take as a percentage of GDP. Given that our coporate tax rates are relatively low and our employer taxes are very low then the rest must be paid for by th public.

This site is about moneysaving, and that includes paying more tax than is necessary.


Edited 17/3 - The above sentence should read.

This site is about moneysaving, and that includes paying NO more tax than is necessary.

Chrismaths

That table ignores the effect of debt, and is out of date. Currently GB is spending 45.3% of GDP, against tax and non-tax receipts to the exchequer of 42.7% (according to OECD - http://www.oecd.org/dataoecd/5/51/2483816.xls)- the difference is that is he is borrowing the rest, which we (you?) will have to pay back.

If you think GB can spend your money better than you, then by all means, please pay as much tax as possible.

LastMinute_2

In reply to the original question, I operate through a limited company, and would thoroughly recommend that you get a decent accountant (costs me about £60 per month to do absolutely everything).

For this fee, I get same day replies to any queries I have about tax efficiency, IR35 issues etc.

I would personally avoid all the companies who promise to lower your tax burden - from what I've read, if you want to maximise your take home pay, and minimise your outgoings to Gordon B, running a Ltd Co. is the most efficient way.

Using this setup, you can *choose* to pay no NI contributions (and income tax), and all your income will be via a small salary plus dividends (which are basically subject to 19% corp. tax up to the higher tax threshold).

As you will be running a Ltd Co. any expenses are offset against company profits (e.g. car mileage), so this reduces your tax further.

cash99

Chrismaths wrote: »

That table ignores the effect of debt, and is out of date. Currently GB is spending 45.3% of GDP, against tax and non-tax receipts to the exchequer of 42.7% (according to OECD - http://www.oecd.org/dataoecd/5/51/2483816.xls)- the difference is that is he is borrowing the rest, which we (you?) will have to pay back.

If you think GB can spend your money better than you, then by all means, please pay as much tax as possible.

Edited my earlier post, missed a small but crucial word.

Good point about budget deficit very likely that when Gordon takes over we will move into the top 5 for Tax % of GDP, and you can bet it still won't be enought to pay for the Olympics.

richt71

mr_forward wrote: »

thanks Guys,

I'm weary of Accountants, Lawyers and Solicitors as I don't have a great deal of experience with them and I find a lot of legal and reglatory jargon daunting.

I would like to have a look at exactly what my £30 a week to 1st contact covers and if paying another accountant £17 a week would get me an equal or better service. Is it simply a case of getting what you pay for? Would a different accountant process my payments and invoices on a weekly basis? What if my accountant gets sick/ run over by a bus?? Is £30 a small price to pay for peace of mind?



I will be waiting to see if Gordon and the Treasury crush my little company just as it takes it's first tiny steps into this world.

Kind regards,


Dan

Best thing to do is call a few accountants. Most will book a free consultation. Explain about your business and see what they offer, how you get on with them and what they'll charge you. Really is worth spending maybe an hour with 5 different ones at the beginning.

sunflowersuffolk

atpug wrote: »

I am with Brookson (Brookson.co.uk) for past 2 years as an employee of a composite company. Now due to the recent tax changes I will be working as a director of my own company.

They offer a very good all round service including many benefits and insurance schemes included within the weekly fee of around £26/week. They even pay for an accountant to do my self-assessment form.
If you’re interested in joining send me a PM (as we can share any renewal offer)

My husband was with Brooksons composite, and they are now pushing him to become a Ltd Company through them. However they are quoting £34 per week for the service. Why is this so much more than you are paying, £26 is much more attractive.
He is thinking of getting his own Ltd Comapny and accountant instead, but Brooksons say they have insurance for IR35 problems, not sure which is best to do and running out of time to decide. Can anyone help.