Ian Spectre travelled by train to the North West of England for a meeting with Peter Sanser. With that, the great man left the office. Now, I’m going to leave you with Ed who will go over accounting and other admin matters.” That gives you a buffer in case IR35 comes along to bite you at any stage. “And I calculate that the company will accumulate cash at a rate of about £20,000 per annum after expenses and corporation tax. We’ll save for a deposit for our first home.” “At present I’m left with about £2,000 per month after deductions. There will be very little tax to pay, so your new family income will be about £45,000 per annum plus your wife’s salary”. Your wife can be company secretary and you will be the director receiving a salary of £5,000 per annum and you can each get about £20,000 per annum in dividends. I understand you’re married, so your partner can be a shareholder too, and I recommend you have 1 share each. “It means that you use a Limited company and draw a small salary and large dividends. In the circumstances I recommend that you treat the contract as exempt, but put money aside in case the Inland Revenue prove otherwise”. I’ve taken the liberty of having your contract independently reviewed for IR35 compliance. This compared very favourably to the £30,000 per annum that Simon’s last employer paid. The contract that Simon had secured had a day rate of £400. BRen brought along Edwards Peters, a newly qualified accountant who BRen was fast tracking to partnership. for 20 years, but was now hoping to retire in 4 or 5 years. He was known affectionately to friends and clients as BRen and had been the senior partner of Warr & Co. Simon was a Computer Consultant who wanted to go freelance and had just secured his first contract. While the content of this blog is based on real situations that our team have experienced, personal and business names have been changed.Ģ8 year old Simon Barton attended a meeting with Bob Renshaw at the offices of Warr & Co. Please see the footnotes and please seek help if you have found yourself in a similar situation. NB: The content of this blog may be upsetting to some people. If you’ve not been acquainted with our Ian Spectre character before, you might want to take a look at a few of his previous blogs. In this Ian Spectre blog we tell the story of the Loan Arranger, a story about the Loan Charge which came into force in April 2019 which sees the Government applying retrospective tax charges for the past 20 years. Accounting for High Net Worth Individuals. Digital, New Media & Creative Businesses.
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