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Welcome To Lewis Simler
We have set up a separate division to give contractors the taxation and financial benefit of trading through a limited company without the harassment and stress of incorporating and dealing with the day to day running of the compliance and accounting side of the business.
As a Director and Shareholder of your own limited company you would take a salary, which would typically be at the level of the minimum wage and the balance of the profit can be declared as a dividend or left in the company.
The profit will be taxed at 20 % and will not be subject to National Insurance, thus providing a substantial tax advantage. There will not be any further tax on the Director/Shareholder until he/she reaches the higher tax rate level which is at present over £39,825. If there are two or more shareholders the tax saving would be greater.
We would take over all the burden of the legal and accounting issues of the company.
For a reasonable fee we would:
Incorporate a limited company and prepare all the necessary documentation to fulfill the legal and statutory requirements.
Deal with all company administration and prepare tax returns
Deal with the payroll on your salary and make deductions of tax and national insurance
Prepare the dividend vouchers
Complete all relevant tax forms, such as P35s, P11D’s etc
Complete all relevant company statutory forms, such as Annual Returns
File abbreviated accounts at Companies House
Submit full accounts to the Inland Revenue
Each week you will submit a time summary and we will invoice on your behalf. Immediately we receive payment of the invoice, we will make a chaps transfer to your nominated bank account, after making the appropriate deductions.
There is no joining fee and we will charge the company £25 per week for dealing with all the company’s affairs, as listed above.
To summarise, you will be paid a salary of at least the minimum wage level which we will calculate on your behalf.
After paying our fees and corporation tax, the balance will be paid to you as dividends or left in the company.
Although we will deal with all aspects of the company for you, it is important to emphasize that you will have complete control of the company and its funds.
As you can see the benefits can be substantial, and we will take over all the onerous tasks of running the administration and accounting for the company.
A word of warning is IR35 regulations. IR35 compliance is crucial for all contractors running one-man companies. It is essential that this is recognised to make certain that IR35 is genuinely complied with in order to obtain the tax advantages of trading through a limited company. Dividends cannot be paid if IR35 applies. It is therefore extremely important to demonstrate that the contractor is not a quasi-employee and is independent from the client. The contract and the working practices need to be rigorously tested to ensure that the contractor is independent. We work together with legal experts in employment law and IR35 regulations to ensure that the contracts fully comply with the regulations.