What are the advantages of registering as a company?

[GoneCoastal]

so it should. It's just a shame it was so badly drafted that cleverly written contracts can bypass it without affecting the fundamentals of the arrangement. Howeever, there is some hope that simply writing in clauses about MOO or substitution is being seen for what it is.

OK I'm goin to respond once and that's it

Cleverly written contracts can be set aside by the revenue because the important thing is "the substance" of what's going on not nec the written wording

I agree, there are some cases where people have been able to use the wording in a contract to avoid IR35 but there is far more to it than just that. It is similar to deciding if someone is genuinely self employed or not. There are a series of tests - in self employment it would be the "7 badges of trade" and you make it sound so easy.... as I said - where I work there is a very high proportion of contractors and I can assure you that most are caught by IR35!

Right that's it from me - from now on back on topic

 

[newbie]

I think it's the wrong forum for politics innit ?
I am not gonna get into a rights and wrongs discussion here because it's not really relevant to the OP and if something is legal then there is nothing wrong with doing it!
And that's me out of the political and anti capitalist discussion on this thread as it's definitely not the right place for it
If the OP has any more questions, I'll be glad to answer them though 'cause I'm going make the effort to stay on topic from now

you really think that advising someone that there are personal advantages to scamming NI is not political?

come to that, do you really think, in a post-Nuremberg world, that to say "if something is legal then there is nothing wrong with doing it!" is not political?

 

[GoneCoastal]

you really think that advising someone that there are personal advantages to scamming NI is not political?

Yes - scamming implies illegal which it is not!

It is acting within the law as it stands!

It is advising someone that they can pay "The Legal Miniumum" much as you would be if you had been overtaxed and then submitted a tax rebate request - you too would be ensuring you had paid the legal minimum too

Or are you saying that if overtaxed, you'd just say "oh well, never mind"


(Oh and please read my earlier posts where I said that the main reason for starting a Ltd Company is to have Ltd Liability and to grow a business - and made reference to these other reasons as a side effect but said they shouldn't be viewed as the primary reason!)

 

[GoneCoastal]

you really think that advising someone that there are personal advantages to scamming NI is not political?

come to that, do you really think, in a post-Nuremberg world, that to say "if something is legal then there is nothing wrong with doing it!" is not political?

Depends if you take politics to work or not - when I am at work I don't ask or talk about politics with workmates - I keep it between me & the ballot box!
I think about politics but certainly would tell anyone at work who I vote for or discuss it in the office...If I felt my job was conflicting with my beliefs, I'd look for another job as soon as I possibly could and if I was really conflicted, I'd leave before finding another one!

And also - re your added comment, nope it is political but since the law is the yardstick by which we judge right & wrong, its the yardstick that in this case one has to operate....
If I want to change the law, I use my vote to do it. Once you get into a discussion about the morality, it's an entirely different discussion I think


PS can we agree to disagree on this one cause it's gonna get to being a looong thread otherwise

 

[newbie]

nothing wrong with long threads but I'm going out now anyway.

This isn't about you and your workmates, it's about financial advice on a public board. Anyone thinking of starting a company can go to a respectable professional and can be given advice about what is within the letter of the law, and how that can be used for their personal advantage. It's only when that is exposed to wider scrutiny that the social consequences become apparent.

No respectable professional is going to explain that NI pays for contributions based benefits (notably state pension), based not on the total of contributions but on the number of 'stamps' bought. So there is a personal benefit to paying the smallest amount possible, so long as the 'stamp' is made. It's legal therefore it's a good thing to do, and the simple fact that those on PAYE have no choice in the matter, they pay 11% NI on their income, and that goes to fund the pension of the scammer, well that's just politics and nothing whatsoever to do with the respectable professional or their client.

Sorry to burst that bubble and let it be know that there is a strong body of opinion that those who indulge in this are selfishly anti-social, prepared to rip off wider society for their own greed. That's politics, sure enough, and the sooner the law is changed not only to outlaw that particular scam but also to claw back every penny of their ill gotten gains the better.

 

[GoneCoastal]

Sorry to burst that bubble and let it be know that there is a strong body of opinion that those who indulge in this are selfishly anti-social, prepared to rip off wider society for their own greed.

Oh it's not bursting a bubble for me - I've been a contractor before and have also worked for 30 years this year. (Public sector, Private Sector, Freelance & PAYE so I got a fair amount of experience & I started as an accountant before going into IT)

The way it was explained to me originally is that it's organising your affairs for your own and your families benefit since that is the primary (and yes possibly selfish but realistic) way large numbers of people think

The folks who object to this being done (that I've met) haven't been in the situation where they have this opportunity or have needed to do this... When they have been in the situation, it's amazed me how quickly their views & actions have changed
... Human nature I guess

 

[stat]

well, I filled in the HMRC 'sole trader' form think I made the right decision not to be a limited company, i can always change it in the future i guess.

just playing about with business cards now

 

[GoneCoastal]

well, I filled in the HMRC 'sole trader' form think I made the right decision not to be a limited company, i can always change it in the future i guess.

just playing about with business cards now

Good stuff!
And all the best to you as well - I hope it works out for you and yep - there's absolutely nothing to stop you going down the Ltd Co route in the future at all if and when it becomes more appropriate
Remember too - it's a lot easier to keep your accounting stuff up to date by doing it frequently then waiting to the end of the year and doing it in one big time consuming hit