Running a Limited Company

TAX

HMRC

A practical guide forfreelancers & contractors

Contents

Introduction

Freelancing and contracting – it’s not a job, it’s a lifestyle choice

Inside the mind of a freelancer or contractor

What are my trading options?

How to start your limited company

Registering your company with HMRC

What you need to budget for

IR35 – understanding the intermediaries legislation

Public sector client? What you need to know about IR35

IR35 – how we can help

Your insurance options

How to secure your first contract

Working with agencies

Getting paid – your responsibilities

How to prepare an invoice

Claiming expenses through your company

What you can claim as expenses

Financial flexibility – paying yourself via salary and dividends

The low salary/high dividend model – how does it work?

How to manage your payroll

Paying dividends – the paperwork

Tax – what you need to remember

How to calculate your dividend tax liability

Value Added Tax (VAT)

PAYE & NICs

Corporation Tax

Your Self-Assessment tax return

End of year accounts

Why you need financial advice

Thinking about growing your business?

Glossary

Map

Notes

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A practical guide to running alimited company

Whether it’s to earn more money or to domore of the work they love, more peopleare taking control of their careers andstarting up as contractors and freelancers.

Find out how you can do the same with ourguide to managing your own limitedcompany.

Benefitting Freelancers andContractors

We consider the UK’s small and medium-sized enterprises (SME) sector to be thelifeblood of the economy, which is why wespecialise in providing a comprehensiverange of accountancy and business servicesto this thriving portion of the UK workforce.

Between them, our members serve around1,600 personal service/limited companyclients and counting. This means we arewell equipped to offer a broad range ofservices to new or current contractors orfreelancers covering any aspect of limitedcompany contracting, including:

> Company formation> Legislative threats including IR35> Taxation > Financial planning

Through promoting quality standards andproviding regular training on technicalsubjects, we ensure that our members havethe tools to offer an exceptional level ofservice to their freelancer and contractorclients, in turn helping to nurture theburgeoning sector.

Introduction

About the UK200Group

The UK200Group is the UK’s leadingassociation of independent charteredaccountants and law firms. Our associationconsists of more than 500 partners spreadacross approximately 150 member offices inthe UK, while our international links spannearly 70 countries.

Our extensive group comprises a wealth ofexpertise and creates a platform for theexchange of knowledge and information,and consolidation of ideas across a range ofspecialist areas.

As a result, our members are better placedto support their clients, who benefit froman expert level of service in specialist andtechnical areas that would otherwise onlybe accessible via large national firms.

Please note: This guide is based upon tax ratesapplying to the 2018/19 year and is generalguidance only. It is so important you receiveappropriate advice tailored to your own individualcircumstances.

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The Freelancers and Contractors are agroup of experts, all from UK200Groupfirms, who specialise in advising thefreelance and contractor sector.

Using our shared knowledge and expertiseand for the benefit of our clients we havetogether brought you this practical guideto running a limited company.

James AbbottChair of UK200Freelancers &Contractors Industry Group

If you are reading this, the likelihood is thatyou are considering joining the fastestgrowing segment of small businesses in theUK. According to the Association ofIndependent Professionals and the SelfEmployed (IPSE), there were roughly 2mFreelancers and Contractors in the UK in2016, contributing £119bn to the UKeconomy.

For many it’s an extremely attractiveproposition, and there are plenty of reasonswhy more people are deciding to make theswitch and work on their own terms.

> More control over your career: You areyour own boss, meaning you decide thework you take on and the work you don’t.You also have the final say over careerdevelopment, meaning the freedom tolearn and apply new skills according toyour own preference and schedule.

> Better work/life balance: More controlinevitably leads to an improved work/lifebalance. As a contractor you often don’thave set working hours, you’re neverobliged to work overtime, and you cantake more time off for holidays shouldyou choose.

Freelancing and Contracting it’s not a job, it’s a lifestyle choice

> Increased earnings: Contractors tend tohave sought-after skills that clients willpay good money to access on an ad-hocbasis, meaning contractors oftencommand higher fees.

> Financial freedom: Limited companycontracting also opens the door tolegitimate tax planning strategies to helpyou save money, as well as pension andinvestment opportunities.

These are the key drivers, though theadvantages of limited company contractingaren’t limited to these factors. If you’re fullycommitted to the contractor lifestyle you’llfind it richly rewarding.

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You’re most likely becoming a contractorafter being a permanent employee. The firstthing to get clear is that the two arenothing alike. There are many differencesranging from the basic characteristics ofyour contract to the tax treatment of yourearnings.

The second is that a change of employmentstatus requires a change of mind set. Beloware a few aspects of contracting where anew approach is required.

Your engagement with clients

As a contractor, you don’t have employers,you have clients. Each job is a separatebusiness undertaking where you have been hired to achieve a goal, rather thanfulfil a role.

Running your business

Aside from the work itself, you also havethe day to day business of running acompany. Running a company has manyresponsibilities that employees do not carry,although eventually this will becomesecond nature.

Inside the mind of a freelancer orcontractor

Winning contracts

Being in business, you need to marketyourself and operate as such. Winning acontract is not the same as beinginterviewed for a job, and requires adifferent approach. Think of your skill as theproduct and yourself as the salesperson.

Managing your finances

You also make your own personal provisionfor time off and retirement. This mightmean buying insurances, saving moneyeach month to cover holidays and sickness,or managing your own private pension pot.But in exchange for this, you still keep moreof the money you earn and enjoy all thebenefits that being your own boss entails.

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To make a success out of contracting orfreelancing in the UK, you have twoestablished trading options to choose from;running your own limited company orworking via an umbrella company.

There are other choices, such as becominga sole trader or joining with a colleague toform a partnership. But time andexperience have shown the limitedcompany and umbrella company optionswork best for contractors.

Working under an umbrellacompany

The main responsibility of an umbrellacompany is to arrange and processpayment for your work. It’s essentially aservice to process transactions, andremoves much administration associatedwith running a company whilst taking careof matters such as tax and accountancy.

The major drawback is that you areemployed by the umbrella company. So allof your income is subject to income tax viaPay As You Earn (PAYE), meaning it istaxed as employment income. You may beable to offset certain expenses against yourtax liabilities, though you won’t have thesame tax efficiencies available to you as alimited company owner.

What are my trading options?

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Running your own limited company

Running your own limited company putsyou in complete control over companymatters, and allows for greater flexibilityover how and when you receive payment.This increased flexibility opens the door totax planning opportunities that can makefor a far more lucrative contracting career.

There are some start-up costs, and you willincur outgoings for professional servicessuch as accountants and insuranceproviders. There is also inevitableadministration involved, though much ofthis can now be minimised by modernstreamlined accountancy processes.

Ultimately, limited company contracting ismore involved, but it allows for greaterfreedom, more control and often higherearnings.

Once you have made the decision toincorporate your own company, there’s ashort checklist of tasks to complete beforeyou’re ready to begin trading. These cantypically be carried out in a matter of days.

Choose an accountant: This isn’tcompulsory, but you’ll struggle to stay ontop of your tax and companyadministration if you don’t. We have awealth of contracting industry expertise tohelp you navigate complex tax laws andretain more of your income.

Incorporate your company: You can formthe company yourself quite cheaply butmost new freelancers need advice on whothe shareholders and directors should be,so ask your accountant to handle theformation of the company and deal withthe tax registrations on your behalf.To incorporate you’ll need to haveestablished:

> A company name and address> A director (yourself)> Details of company shares> Your company’s SIC code

How to start your limited company

In addition, you’ll need to provide details ofpeople with significant control over yourcompany. You’ll also have to create amemorandum and articles of association, inother words, the company’s written rules.Templates for which can be found onGov.uk, or be provided by your accountant.

Register with HMRC: Registration withHMRC is required for you to set up apayroll, pay your company taxes andregister for VAT, and is explained in detailon page 7.

Set up a business bank account: Yourlimited company is a separate legal entityto you personally, and so it needs its ownbank account. This is explained in detail onpage 15.

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As soon as you have incorporated, you’llbe able to register your company withHMRC. This is a quick and simple process,and a necessary one as it’s the only wayfor you to pay company taxes. It’s best toget this out of the way early, as failure toregister your company with HMRC willincur a fine. Plus it can take a while forHMRC to complete some processes, suchas VAT registration.

Registering your company with HMRC

Why you need to register withHMRC

Registration with HMRC is essential foryour company to pay:

> Corporation Tax> VAT> Pay As You Earn (PAYE)

A number of forms need to be filed duringthe company tax year, includingCorporation Tax returns, VAT returns,P11Ds and end of year submissions. Muchof this is now completed online.

How to register with HMRC

Shortly after you have incorporated,HMRC will send you a letter containingyour company’s Unique TaxpayerReference (UTR) and form CT41G,providing information on Corporation Taxfor new companies. You must register withHMRC for Corporation Tax within threemonths of starting up your business, andyour UTR is required for you to register.

You can choose to register with HMRCyourself, but HMRC does allow tax agentsand advisers – which usually means youraccountant - to use its services on behalfof their clients. To help minimise youradministrative load, and guarantee thatdeadlines for payments and submissionsare met, we recommend that you let ustake care of this for you.

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HMRC

What you need to budget for

> Pension: Likewise, you have no employerpaying into a workplace pension, socontributions into your own pensionscheme is advised. Plus there are usuallymajor tax savings when you makepension contributions.

> Professional fees: Part of your budgetshould be allocated for professional fees.This includes accountancy andconsultancy fees, as well as contractreviews and professional advice fromsolicitors. These may seem costly at thetime, but this expert input helps ensurethat over the long term, and if somethinggoes wrong, you keep hold of more ofyour money.

> Business and protection insurance: Youand your company will need a range ofinsurance policies to help to protect bothcontractors and their earnings in theevent of a dispute or mishap. There arenumerous policies, which we cover onpage 12.

> Travel and subsistence: Most contracts,especially those on a client’s site, requirea lot of travelling. A lot of these costs canbe claimed back as expenses.

There are several variables impacting thefees that contractors set aside forthemselves. This needs to be measured,which is why we offer financial planning forcontractors as part of our service.

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Contractors generally find that they earnmore than their employee counterparts, buttreat all your extra cash with caution whenyou first get paid, this money is not yours,but your company’s.

You first need to remember that yourlimited company revenue is pre-tax, and soyou need to hold a portion back for whenCorporation Tax, Income Tax, VAT andpotentially National Insurance Contributions(NICs) become payable. It isn’t always easyto gauge exactly how much you shouldretain, but if you speak to us we can helpyou reach an accurate estimate.

From here on, we recommend that youmake deductions from your earnings toaccount for costs incurred throughout theyear, including:

> Holiday and sick pay: Running a limitedcompany means making your ownprovision for time taken off for holidays and sickness. This could vary significantly based on how much holiday you plan on taking, and your state of health.

IR35 – Otherwise known as theintermediaries legislation - is a taxlegislation combating ‘deemedemployment’. Anybody who worksthrough an intermediary, such as a limitedcompany, needs to consider IR35 eachtime they seek a new contract. If HMRCfinds that an individual would effectivelybe an employee of their client if theintermediary, or limited company, wereremoved from the equation, that individualwould fall within the scope of IR35. Beingcaught by IR35 subjects you toemployment taxes and can reduce yournet income by 20% or more.

How IR35 affects you

Genuine contractors forego the jobsecurity and employment rights thataccompany permanent employment toenjoy the flexibility that contracting offers,which includes tax advantages.

The individual’s HMRC targets attempt togain the tax advantages of contractingwithout taking on the risk. Consequently,as a limited company contractor, you haveto take measures to prove that you aregenuinely in business on your ownaccount.

How is IR35 status determined?

IR35 is all about establishing employmentstatus, which involves consideringemployment legislation and case law. Thisis highly complex, although your

IR35 – understanding the intermediarieslegislation

accountant, or a legal professional expertin IR35, can help assess your status.Essentially, there are three key ‘tests ofemployment’ to be aware of:

> Control – Does the client have controlover how the worker carries out thework?

> Personal service – Is the workerrequired to provide services to the clientpersonally?

> Mutuality of obligation – Is the clientobliged to offer work and is the workerobliged to accept it?

How you can stay compliant withIR35

Working in the private sector, you need toassess your IR35 status and tax yourself. IfHMRC decides IR35 applies and you havenot been paying the appropriate amountof tax, you will receive a bill for backdatedtaxes, penalties and fines. In famous IR35cases, this sum has been well into sixfigures.

You’re advised to acquire a professionalcontract review for each contract youundertake. This is one of the services thatwe offer to our contractor clients, as isexplained on page 11.

If you are caught by IR35, income tax andNational Insurance Contributions (NICs)need to be deducted from your income.The most straightforward way of doingthis is to apply PAYE to your earnings.

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HMRC’s tax yield from IR35 hasconsistently fallen short of its targets. So,from April 2017, enforcement of thelegislation in the public sector haschanged, with new responsibilities placedon public sector organisations engagingcontractors.

What this means for you

You may now encounter challengescontracting for a public sector client thatyou wouldn’t face in the private sector.These could include:

> Receiving your fee via your client oragency’s payroll

> Paying tax at source via Pay As YouEarn (PAYE)

> Being asked to work inside of IR35,regardless of whether the legislationapplies

The key changes affecting you

> Hirers are responsible for assessing thecontractors they engage for IR35. So,unlike IR35 in the private sector,contractors are no longer responsiblefor determining their own status.

> If the contractor is caught by IR35, theparty closest in the supply chain to the

Public sector client? What you need to know about IR35

contractor (the agency if present,otherwise the client) has to operatePAYE on their income, meaning incometax and NICs will be deducted at source.

> If HMRC successfully challenges acontractor’s deemed IR35 status, theparty closest to the contractor will beliable for backdated tax, penalties andinterest – this risk may discourage manyorganisations from engagingcontractors outside IR35.

> If it can be proven that the hirer didn’ttake ‘reasonable care’ when evaluatingthe contractor’s status, the hirer mayassume this liability.

How to respond

Tax liability risk is a lingering threat forhirers and agencies, and your biggestchallenge may be persuading them to hireyou outside of IR35. This is why activelycontributing to your status evaluation isencouraged.

As you would in the private sector, seek aprofessional contract review. Your expertcan also help negotiate terms into yourcontract to minimise any risk to youragency or hirer.

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IR35 poses arguably the biggest threat tothe livelihoods of UK Freelancers andContractors, and so tailoring our servicesto this sector has meant developing acomprehensive understanding of thelegislation.

This, along with access to legalprofessionals within the UK200Group,means we are well equipped to help youavoid IR35, ensuring that you pay no moretax than you should.

IR35 – how we can help

Our contract review service

Central to our IR35 offering is our contractreview service. We have a wealth ofexperience identifying the risk factors ofIR35, helping us to arrive at a soundjudgement as to your employment statusand how your income should be taxed.

In addition to minimising the risk ofexcessive taxation resulting from IR35,securing a contract review with our teamdemonstrates to HMRC that you are takingreasonable care in assessing your status,which will support your case if you happento be subject to an IR35 investigationfurther down the line.

Our experts can also advise on how toadjust working practices to furthermitigate the risk of IR35, and recommendnecessary changes to your contract tohelp avoid IR35.

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Further compliance guidance

However, the contract is only oneelement of IR35, and our serviceoffering is broad based in turn. Wealso provide specialist IR35compliance advice to our contractorand freelancer clients. This includesguidance on:

> Compiling evidence for protectionin the event of an HMRC IR35investigation

> Negotiating IR35 compliance withagencies and clients

> IR35 mitigating protocols, such assecuring written statements

Limited company contracting means youare running a small business, and being inbusiness does bring certain risks.However, for a small portion of yourmonthly fees, you can protect yourselfagainst these risks. Below are a fewinsurance policies that we recommendyou consider.

Business insurance

This covers a range of recommendedinsurances for limited company owners,including:

> Public liability insurance: to protectcompanies against claims made by thirdparties

> Business equipment insurance: to coverdamage to or loss of business assets,such as computers and officeequipment, your household insurancewon’t cover these assets

> Employers’ liability insurance: a legalrequirement if you employ anybodythrough your company

You can buy these insurances as a singlepackage designed specifically forcontracting businesses like yours.

Your insurance options

Professional indemnity (PI)insurance

If a client decides to take action over aperceived error in your work, they couldpursue your company and possibly you asthe company director for damages.Professional indemnity (PI) insurancecovers defence fees and potentially a payout if negligence can be proven.

Insuring against IR35

To mitigate the risks of IR35, you canpurchase tax investigation cover andpossibly in certain circumstances taxliability cover. The former provides adefence, covering the costs of professionaladvisers should HMRC investigate, whilethe latter covers the costs of your taxsettlement if HMRC successfullychallenges your status.

Income protection insurance

This will come in handy if you ever suffer aprolonged period of illness. This providesa level of cover based on an estimate ofyour annual contract earnings.

Life insurance

Leaving employment means losingbenefits including death in service thatcan support your family and/ordependants after you have passed.Purchasing life insurance provides a safetynet for your loved ones in the event ofsuch a tragedy.

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One of the biggest challenges for a first-time contractor is securing their firstprofessional contract. Agreeing a contractis very different to securing a full-time job,and so requires a distinctly differentapproach.

Contractors either contract for a clientdirectly, or via an agency. The formertends to be an option for establishedcontractors who have a large networkwithin their industry, meaning the latter isthe more common approach to sourcingwork.

Where to find a contract

There are three primary channels that youcan use to source potential contractsadvertised by clients and recruitmentagencies:

> Job boards – As well as major jobboards, there are many sites specificallytargeting contractors and specialistindustries

> CV databases – Uploading your CV to adatabase alerts recruitment agencies toyour skills and availability

> Social media – Sites such as LinkedInare increasingly essential for findingcontracts, as well as marketing andnetworking

How to secure your first contract

How to market yourself

Your CV and LinkedIn are the two keycomponents of your marketing collateral.You could find the ideal contract, but inorder to get it, your CV and LinkedInprofile will have to demonstrate thatyou’re perfect for the job.

When writing your CV:

> Tailor it to the role in question, withrelevant skills and experience featuringmore prominently

> Demonstrate the value that your skillshave added for previous clients oremployers

> Keep it concise and relevant

Recruitment agents will often search foryou on LinkedIn as part of their vettingprocess. Some tips for marketing yourselfvia LinkedIn:

> Maintain an active profile and fill it withindustry relevant content

> Optimise your profile for search engineoptimisation (SEO) in order to be foundby more recruiters

> Use the platform to network and joinindustry forums

Following the guidance above will helpgain the attention of recruitment agencies,who for the vast majority of contractorssource the first and many subsequentcontracts.

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Unless you’re already well connected inyour industry, your first contract willalmost certainly be sourced via arecruitment agency. Agencies provideaccess to a wide network of potentialclients, and are often key to securingfurther work. Some clients will only hirecontractors this way, as the agency’spresence eliminates many risks.

How agencies win you work

The primary duties of a recruitmentagency are relatively straightforward:

> Match contractors with suitable contractopportunities

> Negotiate contract rates and fees withthe contractor and client

> Secure the contractor an interview> Assist in negotiating any possible

contract renewals

Agencies take a cut of your earnings, butthey do plenty to justify their fees.However, don’t forget recruiters areworking for the client and not you, thecandidate, and you are in business, notlooking for employment. So make sure younegotiate a good deal.

Working with agencies

Negotiating your rate withagencies

Your agent acts as a broker between youand the client, and may wish to establishyour contract rate before arranging aninterview. You aren’t obliged to confirmyour rates, although it is good to get aballpark figure so you and the recruiter arenot wasting each other’s time. However, ifyou choose to do so, there is a generalrule of thumb to follow.

Research the going market rate for yourskills before proposing a rate towards thetop end of that bracket. Agents that arenot on a fixed percentage – often thesmaller agencies, but not always - willoften try to bargain to secure a healthymargin for themselves, so aim high tobegin with.

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Getting paid – your responsibilities

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Unlike permanent employment, you can’texpect a salary to appear in your bankaccount at the end of each month. Gettingpaid for work completed as a limitedcompany contractor can at times be morechallenging and can mean undertakingseveral tasks.

> Completing timesheets: These areprovided by your agency, or your client ifworking direct, and are used to confirmthe hours or days that you have workedduring the week or month.

> Issuing invoices: Remember you are abusiness so you need to invoice yourcustomer – the agency or client – for theservices your business delivered. This isexplained in detail on page 16.

> Collecting payments: Your invoice willtypically require payment within 30 days,which is standard for business-to-business relationships. Many agencies paymuch faster. However, not all clients andagencies pay within 30 days. Some have60 or 90 days terms and others aresimply poor payers you need to chase.

> Managing late payers: Late paying clientsare an occupational hazard for

contractors and other small businesses. Ifyou do encounter persistent late or non-payers, there are several options,including using a credit collection agencyor filing a claim with MoneyClaim Online.

How to set up a business bankaccount

Your company is a separate trading entityto you, and so you will need a businessbank account to receive payment. There areseveral business banking solutions online.

Many of these are tailored for one-personcontractor limited companies and canprocess your application faster and withoutthe unnecessarily rigorous vetting practicesthat many high street banks undertake.

These are typically cheap and relativelyquick to set up and readily accessible onlineor via your mobile.

Once you have a timesheet that has beensigned by the client, you need to preparean invoice. Unless you are contractingdirect with a client, the likelihood is thatyou will invoice your agency for the workcompleted, who will in turn bill the clientwith its margin on top. Otherwise, you willinvoice the client direct.

What to include in your invoice

Your invoice needs to follow a veryspecific format. Failure to do so cansometimes result in the invoice goingunpaid. In fact, you may find some clientsuse minor errors on an invoice as anexcuse not to pay you at all – don’t givethem that excuse. The details that it needsto contain include:

> Your company name, address andcontact details – include your companynumber and registered companyaddress

> Invoice date and due date for payment> The invoice number> Hours/days being billed for and

hourly/daily rate> Expenses recharged to the client if

applicable> The total value that the above amounts

to> The amount of VAT charged and

company VAT number> Total invoice value> Terms of payment

How to prepare an invoice

What else do I need to know?

As you are in a business-to-businessrelationship, you will typically request thatpayment is made within 30 days. However,agencies tend to pay contractors within aweek of billing the client themselves, soyou may not have to wait that long forpayment.

Most agencies and clients require thateach invoice is accompanied by therelevant timesheets, but be sure to retain acopy of each timesheet before sendingthem over.

You might issue an invoice electronicallyor in paper format, depending on theagency or client’s preference. Invoicetemplates are easily accessible online, andwe’re always on hand to help if you needany further guidance. In fact, manyaccountants now provide solutions withinvoicing capabilities. Speak to us formore information.

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One of the benefits of being a limitedcompany owner is that expenses can beclaimed back from your business and canreduce your tax bill. This may appearcounter-productive, as every expenseclaimed reduces your company profitmargin, but a reduced profit means a lowerCorporation Tax bill at the end of the year,saving you money.

If these are legitimate business expenses thatyou would have incurred anyway, it makesperfect sense to claim them out of pre-taxed money through your limited company.

How do you claim expenses?

Expenses incurred wholly and exclusivelyfor the purposes of the business can beclaimed in a number of different ways:

> Direct payments from your companybank account: This is the most commonmethod of recording your expenses asthey are paid for directly out of companyfunds and are easily identifiable by youraccountant.

> Company Credit Card: This method againallows for easy identification and recordingof company expenses. It is important toretain your credit card statements and allrelated purchase/expense invoices sothat your accountant can identify whatthe expenditure is related to.

> Petty cash: Often directors will draw cashfrom the company bank account and usethis cash to pay for company expenses.This is most commonly used for traveland subsistence costs, particularly whentravelling abroad. This is a totallyacceptable method of incurring businesscosts provided that receipts are retainedin support of the expenditure.

Claiming expenses through yourcompany

> Expenses borne personally by thedirector: It is also possible for a directorto incur expenses on the company’sbehalf. These can be reclaimed from thecompany at full value provided evidenceexists that the expenditure was genuinelyincurred, usually by way of a periodicexpense claim.

Regardless of how it is incurred, eachexpense should be supported by an invoiceor receipt and needs recording. Mostaccountancy services include an expensesrecording and payment process, and manyonline providers now offer solutionswhereby expenses records are automaticallyupdated as soon as you upload an image ofa receipt from your phone.

If you don’t already have a recording andpayment process in place, you needn’tworry. You can easily record your expensesin an excel spreadsheet, and only basicinformation is required:

> The date of the expense> What the expense was for> The amount of the expense

If you record expenses manually, be sure tohold on to all original receipts, or photos/scans, as your accountant may need toverify any unusual costs. Similarly, if youwish to claim VAT on an expense, you needto provide a VAT receipt.

Your own cash expenses can be claimed atany point throughout the year but it is goodpractice to claim regularly and keep tabs onVAT expenditure. Credit card use andcompany capital expenses can be claimedat any time, although you’ll find that mostcontractors claim these expenses on aquarterly basis to align with their VAT returns.

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In this section we are assuming you arenot caught by the additional tax liabilitiesarising from IR35 and working throughyour own limited company.

There are a number of costs that you cangenerally claim as allowable expenses,including:

> Financial costs, including accountingfees and insurance

> Certain advertising or marketing costs> Business purchases, such as laptops and

stationery> Mobile phone (contract must be in the

company's name)> Travel, subsistence and accommodation

for travelling to a temporary workplace> Protective clothing for work

Don't forget the golden rule

To qualify as a legitimate expense withoutcausing tax problems, tax rules dictate,that the cost needs to have been incurredwholly, exclusively and necessarily in doingyour job for your limited company.Practically speaking that means theadditional cost of being a freelancer.

The tax rules regarding expenses can becomplicated and it's important to takeadvice, however, the good news is thatyour UK200Group accountant can helpyou claim legitimate expenses withoutfalling into the many traps that exist.

What you can claim as expenses

Am I eligible for tax relief on traveland subsistence expenses?

One of the most common expenses forfreelancers is travel and subsistence. Youclaim these from your limited company solong as your costs are incurred intravelling to a temporary workplace.

Broadly, a temporary workplace is alocation where you are there for a limitedduration and have not and expect not tobe there for more than 24 months.

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Savvy tax planning can make a significantdifference to your contracting income.Paying a combination of a low salary anddividend is generally the most tax-efficientway for limited company contractors totake remuneration from their business.

How does the low salary/highdividend model work?

The low salary/high dividend model iseffective because those who operate itpay less tax and National InsuranceContributions (NICs) overall than thosewho pay themselves higher salaries.

This is a legitimate tax planning strategy.Many contractors consider the taxadvantages it brings to be fair exchangefor the employment rights that they lose,and the additional costs of protectioninsurances, when they decide to take thelimited company route.

Financial flexibilitypaying yourself via salary and dividends

How does it help you save?

Each component of the low salary/highdividend model has its own advantage:

> The dividend is taxed at a lowermarginal rate than employment incomeand doesn’t attract NICs

> Taking a salary reduces the amount ofincome you are drawing out ofcompany profits, thus reducing theoverall Corporation Tax liability

As a limited company owner, you wouldtypically pay yourself a salary that fallsbelow the personal allowance (PA) andNICs thresholds.

Then you draw a dividend. You can use upany remaining PA to draw dividendincome tax free.

In 2018/19 you also have a DividendAllowance of £2,000 to use. This meansthe first £2,000 of dividend income whichexceeds your PA is also drawn tax-free,although it reduces your basic rate taxband by the same amount (explained inmore detail on page 24).

It’s important to note that the dividendtax brackets apply to all earnings, soissuing a salary won’t delay the point atwhich you enter higher tax brackets.

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The low salary/high dividend model how does it work?

Aanya Sodhi chooses to pay herself viasalary. Employer’s NICs are first deductedon earnings above the £8,424 secondarythreshold, leaving £62,533 to be distributedas salary.

Having accounted for the £11,850 personalallowance, Aanya pays £13,373 in incometax via Pay As You Earn (PAYE).

Aanya also incurs employee’s NICs,amounting to £4,875.

With £13,373 paid out in income tax and£12,342 in NICs, Aanya receives £44,285 inpost-tax income.

Joe Bloggs pays himself a salary of £8,000.This attracts neither income tax nor NICs.

The remaining £62,000 incurs CorporationTax at a cost of £11,780. Joe still has £3,850of his personal allowance and the £2,000Dividend Allowance to use, meaningdividend tax applies to the remaining £44,370.

Joe pays a total of £6,295 in dividend tax(see page 24). When deducted from hisgross income alongside Corporation Tax,Joe is left with a significantly higher post-tax income of £51,925.

Here we compare two limited company owners who have each made an annual profit of£70,000. One takes a salary, and the other takes the low salary/high dividend approach.

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Salary

Aanya Sodhi

Gross income £70,000

Salary £62,533

Gross pre-tax profit N/A

Employers NI £7,467

Employees NI £4,875

PAYE £13,373

Corporation Tax N/A

Net profit N/A

Dividend income tax N/A

Post-tax income £44,285

Dividend/salary split

Joe Bloggs

Gross income £70,000

Salary £8,000

Gross pre-tax profit £62,000

Employers NI N/A

Employees NI N/A

PAYE N/A

Corporation Tax £11,780

Net profit N/A

Dividend income tax £6,295

Post-tax income £51,925

Every employer has to run a payroll, sothat their employees get paid, and so thatpayments and tax deductions can bereported to HMRC. As both the directorand an employee of your limited company,you are obliged to do so as well, and mustprepare payslips on a monthly basis.

This may sound burdensome, but a fullpayroll service is part of the package thatmany specialist accountants provide tolimited company owners, and is certainlywithin scope of the services that we offer.

So in reality, nothing much is required ofyou from this perspective. Your job willsimply be to provide your accountant withthe information required to carry out thecalculations, and potentially pay anyincome tax and National InsuranceContributions (NICs) as required.

How to manage your payroll

What is Real Time Information(RTI)?

HMRC introduced RTI to help understandthe tax positions of individual taxpayers inreal time, removing the need for largeadjustments at the end of the tax year. Itonly applies to employment income (yoursalary), meaning reporting of dividendsand filing of Corporation and Self-Assessment tax returns aren’t affected.

Payroll data now needs to be reported toHMRC in real time, on or before the datethat employment income is paid. As aresult, you may find that your accountantsends you a payslip and an RTI return oncea month, although in the majority of casesthis will be dealt with automatically online.

Providing your annual salary is below theNICs threshold, no income tax or NICs willbe due. Otherwise, any payment due toHMRC needs to be made online prior tothe 22nd of the month following the RTIsubmission.

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You can issue dividends at any pointthroughout the year, as long as you havesufficient profits in the company, althoughcertain paperwork needs to be completedfor the dividends to be valid.

You may find that with your accountancyprovider you are able to pay a dividendand prepare the relevant paperworkautomatically. This is all providing yourincome and expenses reporting is up-to-date.

Otherwise, you’ll need to understand howto prepare board minutes and dividendvouchers, two simple pieces of paperworkthat Companies House requests and areissued at each board meeting whenever adividend is paid.

What is a board minute?

As soon as your company – which inpractice means you and any co-directorssuch as your spouse or civil partner - hasagreed to distribute dividends, it needs tobe acknowledged in the minutes of theboard meeting.

This will typically be prepared by thecompany secretary, although youraccountant can prepare board minutes foryou. The minutes must be signed by acompany director before becoming part ofthe company records.

Paying dividends – the paperwork

This is a straightforward procedure, withthe board minutes simply needing toacknowledge:

> The dividend amount per share> The date of the meeting> The date that the dividend is paid

What is a dividend voucher?

This is the equivalent of a dividend receipt,and is issued to each shareholder in yourcompany who receives a dividend. Itcontains the same basic details as theboard minutes, only each shareholderkeeps the dividend voucher to includewithin their Self-Assessment tax return.

A warning about backdatingdividends

Remember that this paperwork needs tobe completed the day the dividends areissued and should not be backdated.

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Depending on how you run your companyand draw income, you or your companywill be liable for some or all of thefollowing taxes:

> Corporation Tax: This needs to beapplied to limited company profits priorto the distribution of dividends.

> Income tax: If you pay income tax on asalary, it needs to be included in yourSelf-Assessment tax return. This isgenerally paid via two payments onaccount, the deadlines for which are 31stJanuary and 31st July of each year.

> National Insurance Contributions(NICs): If your earnings are above theNIC threshold (currently £8,424), you andyour company will be liable for employee’sNICs and employer’s NICs respectively.

> Dividend tax: This is a tax applied todividends, and needs to be declared inyour Self-Assessment tax return at theend of the year.

> Value Added Tax (VAT): You can chargeVAT on your invoices and pay VAT oncompany expenses. You need to reportthis quarterly.

Making Tax Digital (MTD)

With Making Tax Digital (MTD), HMRC islooking to phase in digital reporting of taxes,which could turn the traditional tax calendaron its head. The regime will requirebusinesses to maintain records of incomeand expenditure via digital accounts andreport to HMRC on a quarterly basis. Thiswill be in addition to an annual statement.

Speak to us for more information on MTD,what it means for your company and howwe can help you navigate the changes.

Tax – what youneed to remember

Tax – the key dates for your diary

6th April: New tax year begins

31st July: Due date for second payment on account

31st October: Deadline for paper Self- Assessment tax return

31st January: Deadline for online Self-Assessment tax return and first payment on account

Your company will also have a financialyear depending on when you begintrading. For example, your financial yearmight span from 1st July to 30th June thefollowing year.

You also have an accounting period forCorporation Tax, which in most cases will match your financial year. Youraccounting period is the time covered inyour Company Tax Return Form CT600,which needs to be filed within 12 monthsof the end of the accounting period. Ontop of this, you usually submit a VATreturn to HMRC every three months.

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Financial flexibility is one of the majorbenefits of limited company contracting.Taking your payment as dividendsprovides this flexibility. Paying yourself adividend rather than a salary also meansyour income doesn’t attract NationalInsurance Contributions (NICs).

Once you have calculated how much profitthe business has made, you then need tocalculate Corporation Tax at the prevailingrate so you know how much tax to setaside. After which point you are ready tocalculate your dividend tax liability.

Don’t forget your allowances

An allowance is an amount of income thatyou can draw tax-free each year. Beforeapplying dividend tax, you shouldconsider your allowances. These are:

Personal allowance (PA): Providing yourannual income doesn’t exceed £100,000,you have a tax-free personal allowance of£11,850.

Dividend Allowance: The first £2,000 ofevery dividend payment is taken tax-free,though it eats into the basic rate band,shrinking it from £34,500 to £32,500.HMRC refers to this as an allowance, but infact it’s a zero-rate band, due to the factthat subsequent tax bands are affected.

Remember, you can apply your PA to thedividend you draw, meaning theequivalent amount will be taken tax-free.

How to calculate your dividend taxliability

Applying dividend tax rates

After this point, dividend tax needs to beconsidered. Below are the dividend incometax rates for 2018/19, which are markedlylower than the equivalent tax band rates foremployment income, helping this model todeliver greater take-home pay:

Tax band Tax rate Income

Basic rate 7.5% £0 - £34,500

Higher rate 32.5% £34,501 -£150,000

Additional rate 38.1% £150,001 +

Here’s how a contractor who has taken an£8,000 salary and a £60,000 dividendwould work out their dividend tax:

> £8,000 of the PA is used on the salary.The remaining £3,850 is deducted fromthe amount of dividend that is taxable,leaving £56,150.

> The Dividend Allowance is £2,000 andeats into the basic rate band, leaving£54,150 that is subject to dividend tax.

> The first £32,500 (£34,500 - £2,000) ofthis is taxed at the 7.5% basic rate, whichworks out at £2,437 in tax. The remaining£21,650 attracts £7,086 in tax at the32.5% higher rate. The contractor pays£9,473 in tax in total.

This is a basic example of how dividendtax is applied. Depending on your personalcircumstances, you may be able to drawincome even more tax-efficiently.Speaking to us can help you identify thebest tax strategy for you.

Please note: Scotland sets its own tax rates andbands which differ slightly to those applying to therest of the UK. The example applies to a non-Scottish freelancer.

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Value Added Tax (VAT) is the UK sales tax,levied at a standard rate of 20% on allgoods and services except those that areexempt or zero rated. Businesses whosegross income is above the £85,000 VATthreshold (correct as of 2018/19) areobliged to register for VAT, which willinclude most contracting businesses.

You collect VAT for HMRC by adding it tothe invoices that you give to your clients(output VAT). This is then paid on to HMRC,usually on a quarterly basis. However, youcan also claim back VAT from your businessexpenses such as technology or equipment(input VAT). Your company will pay thedifference between the amount of inputVAT collected and output VAT claimed on aquarterly basis.

VAT can prove to be an effective way tosave money, particularly when you aresetting up to begin with. Here are the keyadvantages:

> The VAT amount paid on businessexpenses can be deducted from yourcompany’s VAT liability when yourquarterly payment is due.

> Making quarterly payments in itselfmeans your company benefits from acash flow advantage

> You can also earn interest on the money

The VAT Flat Rate Scheme (FRS)

The downside to VAT is having to prepareVAT returns, which means maintainingaccurate records for each transactionincluded. HMRC introduced the VAT Flat Rate

Value Added Tax (VAT)

Scheme (FRS) for smaller companies whowant to claim VAT with less administrativehassle.

The scheme allows users to pay VAT at afixed rate. The rate is determined by thecompany’s revenue and industry, and canvary from 4% to 16.5%. Under the FRS, youcan only claim VAT back on specific largecapital goods purchases.

After finding that some users were makinga modest profit from the initiative, theGovernment introduced changes in April2017. The 16.5% higher rate now applies toany company whose goods cost less thaneither:

> 2% of its turnover> £1,000 a year (if its costs are more than

2%)

HMRC refers to companies in this mould as‘limited cost businesses’. Unfortunately,most contractor limited companies will fallwithin this remit, meaning you’ll likely findthat registering for standard VAT is nowmore beneficial for your company.

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Running a limited company allows you tocapitalise on tax planning strategies thatcan help you retain more of your earnings.If you are paying income tax and NationalInsurance Contributions (NICs) via Pay AsYou Earn (PAYE), you aren’t making themost of your earning potential.

PAYE & NICs

PAYE

PAYE is used by HMRC to collect incometax and NICs from employment, whereby adeduction is calculated and made eachtime the employee is paid. This is taxing‘at source’. Making regular income tax andNICs payments complicates matters if youare a contractor or freelancer, as yourannual tax liability is less clear-cut thanthat of someone on a fixed salary.

Given that limited company ownerstypically receive most of theirremuneration through dividends, theydon’t tend to pay NICs above theminimum amount required.

How to operate PAYE

However, if your contract is caught by IR35,your pay will be subject to employmenttaxes. In which case, making payments viaPAYE is the easiest option. This requiresyour limited company to operate PAYE aspart of its payroll, and is a service that wereadily provide.

Payments and deductions need to bereported to HMRC on or before each payday, whilst annual reports need to be madeat the end of the tax year, including detailsof any expenses or benefits.

Overall there is nothing to gain fromoperating PAYE, and it means further adminif you decide to run your own payroll ratherthan outsource it. If you are working outsideof IR35, you stand to make much more bytaking the low salary/high dividendapproach.

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You pay Corporation Tax on your limitedcompany profits. Your profits arecalculated after expenses and employeesalaries have been deducted from feeincome, but prior to the distribution ofdividends. The UK’s Corporation Tax ratecurrently stands at 19%, and theGovernment intends to reduce this to 17%by 2020.

How is Corporation Taxdetermined?

Corporation Tax is applied to your netcompany profit. In addition to yourcompany trading profits, you will alsoneed to consider profits from:

> Investments, including returns fromrental property that your companyowns, etc.

> Chargeable capital gains, includingprofits from the sale of business assets,etc.

Expenses need to be deducted from yourcompany profits, as do any employeesalaries. The figure remaining will be thesum from which Corporation Tax isdeducted.

How and when do I pay?

You need to submit your Corporation Taxreturn - an online form called a CT600 - toHMRC annually. This informs HMRC of yourCorporation Tax liability by detailing yourlimited company’s income, tax allowancesand expenses, though in practice youraccountant takes care of this for you.

Corporation Tax

You have until nine months after yourcompany’s financial year end to pay yourCorporation Tax liability, though peculiarlyyou can file your return up to 12 monthsafter the company year end.

Setting aside money forCorporation Tax

If you are used to having tax deducted atsource, paying taxes annually can come asa bit of a surprise. Throughout the yearyou need to set money aside forCorporation Tax, potentially income tax onyour salary, NICs and dividend tax on yourdividends.

By running a basic profit and loss accountreport each month, we can provide youwith an accurate estimate of how muchyou need to hold back as a portion of yourearnings.

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As both the director and an employee ofyour own limited company, you’ll need tokeep on top of both company and personaltaxation, which involves preparing a Self-Assessment tax return each year. In reality,we take care of all of this for you, though ithelps to have an understanding of exactlywhat is required of you.

What is a Self-Assessment taxreturn?

Your Self-Assessment tax return is used todetermine the amount of income tax,dividend tax, NICs and capital gains tax(CGT) due, on income drawn from yourcompany, as well as any other possiblesources of income such as rentalproperties and other investments you ownpersonally. It applies to any person whoreceives income from which tax isn’tdeducted automatically – for you this willlikely be income sourced throughdividends and other investments.

To complete your tax return, youraccountant requires details of any personalincome received throughout the tax year, aswell as details of any expenses andinformation regarding other incomesources. Depending on your accountingsolution, you may provide this informationthroughout the year. Otherwise, you’llneed to keep careful records.

Your Self-Assessment tax return

Don’t miss the deadlines

If you file your Self-Assessment tax returnby paper, the deadline is 31st Octoberfollowing the end of the tax year. Foronline tax returns, the deadline is thefollowing 31st January, which is also thedeadline for payment.

If your income tax liability exceeds certainlimits HMRC will request a payment onaccount – an advance payment on yournext tax return judged from your incomefrom the prior tax year – on 31st January inthe 5th April tax year and 31st Julyfollowing the end of the tax year.

It’s also important to remember that this isa personal tax return. As a result, if youcharge the fees for completing the taxreturn to your limited company, it will beclassed as a benefit in kind and income taxwill be due on it.

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When we refer to ‘end of year accounts’ wedon’t mean the end of the calendar yearbut rather the end of your company’sfinancial year. This will initially depend onwhen your company is incorporated.However, the year end date can be changedif required but the company must filestatutory financial statements withCompanies House within 9 months of itsyear end.

Company Tax Return Form CT600

Your company also needs to submit aCompany Tax Return Form CT600. Youraccountant completes this based on thefinancial records that you provide, and youneed to check and sign the return beforeit’s submitted.

This return will detail your Corporation Taxliability. Although you have 12 monthsfrom the end of your company’s financialyear to file a CT600, Corporation Tax is infact due nine months after the companyyear end.

So, if you have a financial year that endson 31st March 2018, a CT600 will be dueon 31st March 2019, yet your CorporationTax payment as stated on the return willbe due on 1st January 2019.

End of yearaccounts

Submitting VAT returns

Most limited company contractors submitVAT returns every three months, a periodwhich is known as your accountingperiod. Though this is separate from yourfinancial period, many contractors havean accounting period that aligns withtheir financial period, meaning a VATreturn is also due on the same date that aForm CT600 is due.

Making Tax Digital (MTD) – theend of end of year accounts?

HMRC’s plans to introduce a fully digitaltax system could change all this. MakingTax Digital (MTD) will require companiesto use digital accounts to keep recordsand report to the taxman on a quarterlybasis, meaning end of year accountscould soon be a thing of the past. To findout about how MTD might impact yourdirector duties, get in touch.

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Whilst running your own limited companydoes mean that you have to make provisionfor yourself in many regards, the financialflexibility that it allows can yield somesurprising tax advantages for your personalfinances.

You’ll also find that you have access tocertain services that you may not haveknown were available. Securing soundfinancial advice from a specialist adviserwho understands contracting is essentialthough. A good idea would be to make usyour first port of call.

Tax saving opportunities withcontractor pension schemes

With no company pension schemeavailable, many contractors set aside aportion of their earnings each month to gointo a private pension fund, which actuallyoffers significant tax saving opportunities.

Unlike earnings drawn from the company,money paid into a pension pot by thecompany is pre-tax, so doesn’t attractCorporation Tax, income tax or NICs.

Most limited company contractors cancurrently invest up to £40,000 each year,and can choose to buy an annuity orinvest in other assets upon retirement,should they wish.

You can draw on your pension from theage of 55. This might seem like a long wayoff, but it can be worth it. If you wish todiscuss pensions or financial planning ingeneral, please let us know.

Why you need financial advice

Mortgage options available tocontractors

For limited company contractors, securinga mortgage was once a difficult task, withbanks and building societies typicallyrequesting up to five years of accounts.

However, there is now an increasingamount of mortgage lenders willing toprovide loans based on an estimate of acontractor’s gross contract value, andmany brokers who specialise in advisingcontractors. In many cases, all the lenderwill need to see is the accountantsreference detailing historical performance.

Other savings and investments

There are many other opportunities opento contractors, who can also use theirlimited companies as vehicles forinvestment. This can encompass anythingfrom equities and artworks to preciousmetals and property portfolios. There arespecial rules that apply if you use yourcompany for investments so for furtherinformation and guidance on the potentialoptions available to you, get in touch.

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You may eventually find that you haveambitions beyond contracting. It could bethat you no longer wish for your companyrevenue to be reliant on you alone, or youfeel that you could profit even further fromthe expertise you have amassed duringyour career and the contact networks ofclients and other contractors. Either way,your limited company provides you with theplatform to build a growing business.

Options for growing your business

Many contractors eventually decide tomove into consultancy, meaning theycontinue to share their expertise andknowledge with clients without actuallyhaving to put their skills into practicedelivering the work. This is ideal if youreach a stage where you have amassed alot of knowledge and you’re keen toreduce your workload without necessarilyreducing your income.

Alternatively, it may be that you spot anopportunity to market a specific skill,process or product that resolves acommon issue – new software is a goodexample of how contracting businesseshave grown. In either case, hiring andmanaging contractors enables you toreach more clients and maximise on yourrevenue earning potential. It can also bean effective way to fill your own skillsgaps. In other words, if there are any skillsthat you don’t possess, hire somebodywho does.

Thinking about growing yourbusiness?

Preparation is key

Whilst starting up as a limited companycontractor is relatively straightforward,growing your business – which mayinclude employing people and securingpremises - is far more involved. You’ll needto have developed a solid business planand considered how you are going tomarket your services. Financial planning isalso a necessity, and is another area wherewe can add considerable value, helpingyou to create and implement a strategythat will give your business the bestchance of success.

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Companies House: The Government serviceused to incorporate and dissolvecompanies, as well as register companyinformation and make it available to thepublic.

Company Tax Return Form (CT600): Areturn completed on behalf of a companyeach year, detailing its Corporation Taxliability.

Contractor: An individual who providestheir services to a client on a contract basis,typically as a business-to-businessexchange.

Contract review: An evaluation of acontract, carried out by an accountant orlegal expert, used to determine IR35 riskand assess commercial terms.

Corporation Tax: Tax paid on the profits ofa company, following the deduction ofexpenses and employee salaries.

Deemed employment: An HMRC term usedto describe an individual who has beenpaying tax as though they are a self-employed contractor but whose workingpractices mean they are legally anemployee.

Dividend tax: Income tax applied to thedistribution of dividends at significantlylower rates than personal income tax.

Expenses: Costs incurred that can be offsetagainst an individual’s or company’s taxliability.

Freelancer: Somebody who works on aself-employed basis who isn’t committed toa particular employer long-term.

Glossary

Income tax: Tax paid on personal income.

IR35: Tax legislation with the purpose ofidentifying ‘deemed employees’ andensuring that they receive the correct taxtreatment.

Limited company: A private companywhich operates as a separate legal tradingentity from its owners, insulating them frombusiness risk.

National Insurance Contributions (NICs):A tax paid by employers and employeesused to fund state benefits.

Pay As You Earn (PAYE): HMRC’s systemused to collect income tax and NationalInsurance Contributions (NICs) fromemployment.

Payroll: A company’s records of itsemployee’s salaries or wages, as well asdeductions of income tax and NationalInsurance Contributions (NICs).

Personal service company (PSC): A termdevised by HMRC used to describe acompany that exists only to hire out theservices of a sole individual.

Personal allowance (PA): An amount ofincome that an individual can earn within atax year before income tax becomes due atthe basic rate.

P11D: A tax form filed by employers toreport expenses and benefits to HMRC forindividual company directors or employees.

P35: An annual return completed byemployers, providing details for everyoneemployed during the tax year.

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Reasonable care: A compliancerequirement for anybody responsible forassessing a contractor’s IR35 status,believed to equate to acquiring expertadvice.

Real Time Information (RTI): A systemimplemented to make PAYE submissionsmore efficient, instantly informing HMRC ofchanges when information is submitted.

Recruitment agency: An organisation thatplaces candidates in suitable contracts,negotiating terms and overseeing therecruitment process.

Self-Assessment: The end of year tax returnused to determine how much tax is due onan individual’s personal income.

SIC (Standard Industrial Classification)code: A code assigned to a company whichinforms the Government of its nature ofbusiness.

SME: Small and medium-sized enterpriseswhose personnel numbers and annualturnover fall below certain limits.

Glossary

Tax-planning: The analysis of a financialsituation with the purpose of achievinggreater tax-efficiency.

Umbrella company: A company that acts asan employer to contractors, processingpayment and taking care of tax andadministrative matters.

Unique Taxpayer Reference (UTR): Anumber that identifies you with HMRC foranything related to your personal taxobligations.

Value Added Tax (VAT): The sales taxlevied on the majority of goods andservices exchanged in the UK.

VAT Flat Rate Scheme (FRS): A schemeavailable to small companies, enabling themto pay VAT at fixed rate without subjectingthem to the same administrativerequirements.

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Belfast

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We’ve got it covered

T a

Members’ geographic distribution

UK200Group independent CharteredAccountancy and Law firms offer strategicbusiness support servicing key industriesthroughout the UK, in over 150 locations.

Global support extends to over 70 countriesthrough UK200Group InternationalAssociates and the Group’s membership ofIAPA – a global association of independentaccounting firms and groups.

www.uk200group.co.uk

This guide has been prepared for general interest and it is important to obtainprofessional advice on specific issues. We believe the information contained init to be correct. While all possible care is taken in the preparation of this guide,no responsibility for loss occasioned by any person acting or refraining fromacting as a result of the material contained herein can be accepted by theUK200Group, or its member firms or the author.

UK200Group is a trading name of UK200Group Limited and is an associationof separate and independently owned and managed accountancy and lawfirms and as such each has no responsibility or liability for the acts oromissions of other members. UK200Group does not provide client servicesand it does not accept responsibility or liability for the acts or omissions of itsmembers.

Notes

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Notes

Version 1 May 2018

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