Contractors

The provision of high level knowledge skills in certain sectors of the UK economy has traditionally been delivered by individuals trading as limited company ‘contractors’.

This structure allows both worker and the client to obtain flexibility, outside of the constraints of modern day employment law, as well as both obtaining tax and national insurance savings.

 

We have developed a wealth of accounting experience in acting for such contractors, who typically require a mix of our services such as:

  • Start-up assistance
  • Specialist tax advice in relation to IR35 and “24 month” rule for travel and subsistence
  • IR35 contract reviews
  • Registering for VAT
  • Remuneration planning ( tax efficient mix of salary and dividends)
  • Annual payroll and personal tax returns
  • Cloud Accounting services

 

We can also help answer questions such as

  • Is my contract IR35 friendly?
  • When can I take dividends?
  • How do I start a limited company?

Client Review

As an engineering manager, I started my own consultancy business ten years ago, with my wife as co-director. Whiting & Partners guided us in setting up the day to day accounting systems, that even the smallest company has to have, and have since looked after the annual accounts and tax matters.



 
Latest Blogs in Contractors
 
Hannah Wisbey
17th October 2017 Actors: IR35 tax rules will probably apply.

  In a recent tax tribunal test case, relating to the well-known actor Robert Glenister, HMRC were challenged as to whether the IR35 intermediary tax rules should apply to an actor earning his living through a personal service company.   As is typical with individuals providing their personal services through an intermediary company, Mr Glenister…

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Vanessa Pearson
12th March 2017 New Flat Rate VAT Rules

Contractors: New flat rate VAT rules (Limited Cost Traders) HMRC has released updated guidance regarding changes to the flat rate VAT scheme which come into effect on 1 April 2017. The advantage gained by using the flat rate scheme is going to be restricted for ‘limited cost businesses’. A limited cost business is one whose…

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Vanessa Pearson
10th March 2017 IR35 in the Public Sector

HMRC: Finally release new Employment Status tool. The new public sector IR35 assessment rules come into effect on 6 April 2017 and contractors have been concerned that they are unable to confirm their IR35 status. HMRC has now released its long awaited online Employment Status Tool. The tool is available to contractors, engagers and agencies…

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Philip Peters
23rd August 2016 IR35 Compliance

IR35: Proposals for off-payroll working in the public sector. HMRC has been consulting over the summer on reform of the intermediaries legislation, commonly termed IR35. The proposal, announced in the Budget 2016, is to move the responsibility for determining the tax status of engagements in the public sector by consultants and others operating through their…

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Vanessa Pearson
23rd August 2016 New TAAR for Personal Service Companies

New Liquidation Tax Rules: How to ensure capital tax treatment. Most contractors will be aware that HMRC introduced a new targeted anti-avoidance rule (TAAR) wef 6-Apr-16, that will make it more difficult to obtain capital gains tax treatment when profits are withdrawn from a company by way of liquidation or dissolution. Four tests have to now be passed…

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Philip Peters
10th August 2016 Distributions on a company winding-up

In the Budget earlier this year the Chancellor announced that there would be a new rule aimed at stopping tax avoidance when a limited company is wound up and funds are distributed to the shareholders. Where certain conditions are met, the distribution will be treated as income in the hands of the shareholders rather than…

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Vanessa Pearson
14th July 2016 IR35 Shake-up?

IR35: HMRC research into making clients responsible for compliance. HMRC have undertaken research to understand how employers would react if made responsible for operating IR35 on behalf of their contractors. HMRC are keen to level the playing field between employees and those who use a limited company to work in a similar manner, as they…

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Paul Jefferson
16th June 2016 Flat Rate Sector

Contractors: Don’t pay too much flat rate VAT. Just three weeks ago it was reported that the VAT flat rate scheme guidance was flawed. The ATT had highlighted that HMRC’s practice was costing traders, as they were forced to pay more VAT to HMRC under the flat rate scheme than the law required. HMRC has…

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Vanessa Pearson
5th May 2016 Public Purse

IR35: Could proposed changes actually result in lower taxes for HMRC? As previously reported, the government are consulting into reforming IR35 for public sector workers. They wish to make public sector engagers responsible for determining the IR35 status of the their contractors. Research by ContractorCalculator has predicted these proposals will result in a £115m tax loss…

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Vanessa Pearson
23rd March 2016 IR35 Anti-Avoidance Proposals

Office of Tax Simplification: Suggest look-through companies, to deal with IR35. The OTS have been reviewing the taxation of Personal Service Company’s, with the aim of dealing with the “issue of IR35”. They are recommending the shareholders of PSC’s pay income tax on the company profits directly, instead of via corporation tax. This “look-through” taxation…

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