Contractors and Personal Service Companies

Contractors are a specialist field with their own issues. In recent years we have developed close relations with a number of specialist Contractor Accountants advising both them and their clients on all aspects of insolvency.

It has become increasingly apparent that  HMRC are keen to focus on this area as it is perceived that an advantage is being gained by Contractors which is not available to other salaried workers. Our experience suggests that this is far from the truth. The reason why many Contractors trade through a limited company is a result of the interaction between Employment law and Tax advice from their accountant. Most Contractors we deal with have to trade through a limited company as the agencies they obtain contracts through insist on it.

IR35 is tax legislation that is designed to combat tax avoidance by workers supplying their services to clients via an intermediary, such as a limited company, but who would be an employee if the intermediary was not used. Such workers are called disguised employees by HMRC. If caught by IR35, they have to pay income tax and National Insurance Contributions  as if they were employed. The financial impact of IR35 is significant. It can reduce the worker’s net income by up to 25%, costing the typical limited company contractor thousands of pounds in additional income tax and National Insurance Contributions.

We consider that IR35 is going to remain a major issue for Contractors with more enquiries being launched by HMRC. We anticipate that many small companies will not have the resources or desire to challenge HMRC should they be found liable. In these circumstances we can assist in putting the company into liquidation.

For those companies that have accumulated substantial cash reserves, we provide a quick MVL service to unlock the shareholder’s funds.

Where the company is facing demands for unpaid tax from HMRC we provide free confidential advice. We can assist the director to place the company into Creditors Voluntary Liquidation where necessary.

Please contact us through the website or telephone.

Ring the Freephone Helpline now on 0800 012 6649

What our clients think

Contact Us

Free Phone

0800 012 6649

Email

help@lineshenry.co.uk

Social Media

Request a Call Back