Agency Nurse Limited Company Advice

albreda

Hi

My partner is employed by 3 agencies as a Specialist Nurse (ITU). His newest agency suggested that by setting himself up as a limited company he could take home more money.

Could anyone offer any advice on this? What would be the process?

Savvy_Sue

If the agency is suggesting this, can they not point him in the right direction? Note that they will also save money as tax and NI will become your husband's responsibility ...

Alternatively he could phone his local HMRC office (used to be Inland Revenue but they merged with Customs) and see what they have to say, they are usually very helpful.

1jim

I cant see how he would take home more money and it could be a real pain, I guess he would have to register with companies house and complete annual returns, but i guess he could claim tax back on business milage, but would then have to pay extra to insure the car for business use.
When I worked for a nursing agency, they got paid a certain amount, they then gave you a set amount but tax was PAYE and NI were covered, now they also give you annual leave (I believe) would they still give sick pay and annual leave to a limited company??
Probably one to check out very carfully, also the inland revenue were talking about clamping down on ltd companies that set up as this to avoid certain taxes so worth checking this out too
good luck
Jim

naj131

Hi

the process would involve your partner setting up a ltd company with him being the shareholder. The company would then invoice whoever he works for. This money could then be paid as a dividend to your partner. The main saving is on the NIC contributions.

There would be additional costs eg preparing statutory returns/accounts. It therefore comesdown to assesing the potential saving vs additional costs.

pm me if you want any more detail

John_Jackson_2

You'll have to make sure that he doesn't fall foul of the IR35 rule, otherwise you could end up worse off.

Info:

http://www.hmrc.gov.uk/ir35/