[Gllug] OT: umbrella companies for contract work

[t.clarke]

I purposely stated that the taxation situation was muddier  -  however there is
no longer a requirement to pay over ACT on dividend payments.  The dividends
get an implied tax credit which can be offset against personal tax thereon.
However tax must be paid on the profits at small companies rates.
I believe there were some changes to tax law made recently to plug a loophole
where profits under a certain limit bore no tax and then could be distributed
with an underlying tax credit. I think now that distributions to living persons
where the underlying tax rate is less than 19% now have to bear tax at the time
of payment  - but this gets even messier !


I would repeat, running and accounting for a small company is pretty easy these
days  - just the tax side can be messy !

Tim
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