Many people these days run their own one-man companies subcontracting for work. HMRC do not like this arrangement and brought in the infamous IR35 rules to deal with the perceived problem. In reality this is a common and normal business situation and there is no problem IF and only IF you do the paperwork properly. We can set up a suitable company for you with proper paper work in place to protect you and your employer. We have considerable experience in the building trade and with Sales agents. For those working in the building trade we have excellent experience of the CIS rules which many people have not realised have changed in recent years. One new client came to us and we instantly corrected, and simplified, his company arrangement for a nominal cost. Soon afterwards his former umbrella company was subject to an HMRC inspection but by then we could point out he had already corrected his affairs and the problem was resolved before it became an issue.
A few years back the Chancellor of the Exchequer decide that it was a good idea for small companies to pay less tax. Surprisingly the taxman then found lots of people ran their business as a small company and he was losing money. As a result he started a series of court cases to try and recover this money, generally called IR35 companies – most of which he lost. We can help you stay the “right” side of this problem.
We have many clients and also companies that fall under CIS. CIS isn’t always straight forward, as the returns have to be submitted to HMRC on a monthly basis. CIS can be mind boggling at the best of time, and also time consuming if you make mistakes. We have vast experience in dealing with CIS and HMRC and all the paperwork that goes with it.
Husband and wife company
This is one of the commonest types of company, and there are many good reasons for this. There are however many pitfalls, not least being take under the IR35 rules, but also the new Auto enrollment pensions and the new dividend rules. Get good advice to make sure it works for you.
We have many clients who are sub-contractors it the IT industry. This is the taxman’s favorite place for tax investigations. We have had much success it negotiating with the taxman to avoid large bills for our clients.
Many business subcontract out their telesales or other sales functions. This works brilliantly for them, but can leave the salesman at risk from the taxman. We can put in place a system to ensure your tax bill is as low as possible.
These were all the rage in certain industries a couple of years ago. We do not advice that you use them now as the tax rules have changed and the Taxman really attacks them. We can unwind them for you and extract you from the mess they may have landed you in.