Contractrors IR35
Information About Contractors IR35
Contractors IR35
Are you a contractor with your own company, or self employed providing your services on a long term basis to one customer? This may well be for you.
How would you like to be able to leave some one else to sort all the paperwork, reduce your own tax return to a few simple entries AND receive up to 85% of your turnover paid to you with no further tax due?
You do need at least a £50,000 income per year for this scheme to be successful and the savings are largest for companies suffering under IR35 taxes. However the scheme is still appropriate for many companies and sole traders.
Disadvantages?
This scheme utilises some fairly basic tax planning, put together very cleverly. It may end at any time, though it has been working successfully for over 3 years now.
Does it cause any mortgage issues etc regarding proof of income? The company running this has had plenty of experience in providing the paperwork required to satisfy lenders.
Is the scheme Legal?? The scheme is registered with the Inland Revenue (though schemes do not ever get approved) the PAYE part of the scheme and VAT are all registered and dealt this in the UK.
What if it goes wrong?
You are techincally an employee of a company (not a director or shareholder) so your own risks are minimal. Should the scheme cease to work we will obviously look to amend and adapt till it does. At the end of the day you can jsut return to your old system, knowing you have more monies in your pocket from the previous tax saving!
The scheme has been approved by top tax and employment lawyers who are, by approving it, putting their own reputation and insurance policies on the line.