Tag: Contractors

Profit extraction in 2020-21 through optimal salary
Articles

Profit extraction in 2020-21 through optimal salary

If the director is under 21, there is no secondary Class 1 liability until earnings exceed £50,000 and in this scenario, the maximum salary that can be paid free of tax and National Insurance is one equal to the primary threshold of £9,500 per month.

Contractors Tax Issues
HMRC

Contractors Tax Issues – A How to Guide

If you’re on the lookout for a new accountant to handle your tax affairs and need to ensure you find just the right fit for the job, read our tips on how to find the financial whizz you need, allowing you to get back to the important job of running your business.

Tax Planning NHS Doctors and Consultants
HMRC

Accounting and Tax Planning for NHS Doctors and Consultants

One major issue for doctors working on a locum basis is that because of the rotation schedule you adhere to, there may be issues with your tax code. This is a basic part of figuring out what you have to pay, but all the same, it’s understandable if a busy professional isn’t able or just doesn’t want to think too much about their taxes!

tax avoidance
Our Blog

Contractors | Loan Schemes and Tax Avoidance

These loan schemes come in a number of shapes and sizes. Currency arbitrage is one of the riskier methods. The idea behind it is that through signing up with an off-shore company, and receiving exotic foreign currencies in exchange for loans, that your earnings can be turned into non-taxable foreign exchange gains.

HMRC Fraud Investigation Service
Our Blog

HMRC Fraud Investigation Service – Code of Practice 8

If you are found to have done nothing wrong, you will be informed that the investigation has been completed and no further action will be taken. You may be susceptible for repeat investigations in subsequent years if further suspicious tax data is received.

IR35 Accountants Approach
HMRC

IR35 Accountants Approach

If you consider how many contractors work for a major public sector body like the NHS, then the logistics of such a task are unfathomable. Most public sectors teams lack the necessary experience and understanding of case law to make a reasonable decision.

Employment Benefit Trusts Tax Avoidance Schemes
Our Blog

Employee Benefit Trust – The Story Behind

The main purpose of an EBT is to reward and incentivise employees, who in turn are keen to see the company fare well, and yield the rewards at a later date. This can include the granting of share options, or cash payments to beneficiaries.

Contractor Tax Avoidance
Our Blog

Contractor Tax Avoidance

Any company or individual who sets up a tax avoidance scheme has to obtain a DOTAS, which is a disclosure of tax avoidance scheme. In recent years, the HMRC have been increasing their investigations on any schemes registered via the DOTAS system. The HMRC claim that they win a vast majority of all contractor tax avoidance cases in court.

HMRC Approach to Income Shifting
HMRC

HMRC Approach to Income Shifting

The law on income shifting means that if you have a non-working partner or a partner who earns lower than the higher tax rate threshold, which stands at £43,000, you could include your spouse as a shareholder and let them have a share of dividends, which would reduce the tax bill.