Our Robust Limited Company Solution

Limited Companies, like umbrella companies, have long been a popular way for contractors to manage their finances and retain control of their own affairs. Here at Clever PAYE we know that some contractors are happy sticking with the structures they know best and that Employed or Umbrella Solutions are not for everyone. That’s why we’ve put together a wide range of solutions for contractors to choose from and which include Limited Company Solutions – albeit ones which offer a much higher income retention rate and less paperwork than contractors have become used to.

How It Works

Our compliance team and contractor accountants have taken the traditional Limited Company structure and given it a fresh twist. What that means is that you remain in total control of your company as the sole director but Clever PAYE take care of all the tedious admin and the day to day paperwork that is the bane of Limited Company contractors. Why waste valuable hours filling out forms and filing stuff away, chasing payments and organising invoices when you could be concentrating on working and making money? Instead, we’ll handle all that paperwork and what’s more we’ll do it in such a way as to maximise the return you get on your earnings in a unique, innovative and fully compliant way.

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Why Go Limited?

Many contractors these days go straight for the Umbrella Company formation because it has been around for so long and because they see other contractors doing the same. But in today’s landscape utilising a Ltd Company through a Recruitment Company will set a number of HMRC triggers and will see you subject to a number of audits;

a) IR35. This is legislation designed to eliminate contractors that appear to be employed working as a Ltd Company merely to gain a tax advantage. This is an audit you simply wouldn’t pass and would see your entire Gross Contract Value re evaluated as employment income. There would be an additional charge to the employer for employers NI and that would almost certainly be the Recruitment Company. If you pay yourself a small salary, utilise expenses and then pay the larger share of income as dividends then your annual self assessment will trigger an audit under IR35.

b) The new Agency Regs (The Onshore Employment Intermediaries Legislation) commonly referred to as Disguised self-employment will be used to audit contractors working in any way other than PAYE “employed” through an employment business. This will be determined by whether or not there is any evidence of Supervision, Direction or Control by either the agency or the client. HMRC will, in every case, assume there is Supervision, Direction or Control unless you can prove there isn’t and, regrettably, in your situation you could not do that successfully.

c) Working as a Ltd Company will mean you have to self-assess at the year end and you will have just entered the murky world of HMRC allowances interpretation. At the moment you can’t be pulled for audit under self-assessment because you don’t need to self-assess while you’re with us.

d) Your agency will be submitting an RTI report on you and your income direct to HMRC from April of this year and you will have to ensure that the submissions at Companies House and HMRC all add up to what they expect.

e) you are also going to have to get Public Liability Insurance, and Professional Indemnity Cover and maintain that every year.

The Benefits of Clever PAYE Limited Company Structure

  • Industry Leading Retention Rates

  • Our contractor tax experts have tweaked the Limited Company structure to enable us to offer incredible rates of retention (as much as 85-90%).

  • Fully Compliant Solution

  • As with all of the solutions we offer, our Limited Company structure is fully compliant with all current HMRC legislation. Because our compliance team are constantly monitoring any new or potential legislation all our solutions will always be compliant as soon as new legislation is introduced.

  • Easy to Join, Easy to Leave

  • We’ve set it up so that joining us and leaving us are extremely easy, with no hidden fees.

  • Full and Complete Employed Status

  • Legally you are an employee and you receive all of the associated benefits accordingly, including all of your professional and public liability insurances.

  • Easy to Join, Easy to Leave

  • We’ve set it up so that joining us and leaving us are extremely easy, with no signing or leaving fees.

  • We Do The Paperwork

  • One of the main disadvantages of a Limited Company is the paperwork. With our unique Limited Company Solution we do all that for you!

  • Claim Expense

  • Limited Companies allow you to offset any and all legitimate business expenses, from accountancy fees to software, office equipment to the VAT flat rate scheme. Our contractor tax specialists can help you maximise the amounts you can claim.

  • Insurances Included

  • Our Limited Company Solution will ensure that you have all the correct cover when it comes to Public Liability and Professional Liability insurance cover

  • A Dedicated Account Manager

  • Your own account manager will always be there at the end of the phone to help you with any queries or problems.

Look at how our employed solution compares to other payment solutions

A Limited Company Without Limits

The Clever PAYE Limited Company Solution is unique in the contractor market because it offers all of the benefits of Limited Company formation (tax efficiency, security, control of your own company) with none of the associated disadvantages (admin, paperwork, stress). Add to that the incredible rates of retention that our contractor tax specialists and our compliance team can achieve in comparison with all other Limited Company structures and we think this is a fantastic package.

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