You'll need to check that your current solution remains compliant mate, if you are currently in a "composite" then the new IR56 legislation will screw you, and dont let your management company tell you any different, if you are already set up as a stand alone LTD comany then you'll be ok.

Tonio, you have a PM

Hes right ya know....

Only coz no one would have you. :)

But Dibble, surely if hes a 1 man Ltd Co he'll be screwed by IR35 unless he has a good contract...

As my new accountant can you expand on this?

email sent.

Cheers,
Tonio.

Well sort of. Not an area of expertise but have had previous dealings. Best places to get info on this are:

http://www.shout99.com/contractors/index.pl?n=10

http://www.startups.co.uk/What_is_it...F1oEYn0nA.html

http://www.startups.co.uk/IR35_Who_d...P1oEYn0nA.html

The second 2 are the best.

In reality it is still a very grey area and always will be. If you are a contractor it is likely you have very little expenses (ones I have dealt with have at least) so the calculation actually benefits you slightly initially at least:

If you are under IR35 basically you take the total income, knock off 5% for expenses and the rest has to be a salary (which is where you lose out cos dividends save money).

Don`t forget that some compan`y will not deal with you unless you have a schedule D insurance number and there hard to get hold of, so I`m told.

I have a normal national Insurance number as well as a schedule D but there`s so much hasle with tax, national insurance etc I just declare my stuff as unearned income, as I`m not VAT registered, and don`t bother using the schedule D as they can`t get there tiny mins around the fact that I have a full time job and do the accasional freelance work.

Good Luck and get a good accountant.