FEES
An example of the need for an expert
FEES SEE BELOW
How the unsuspecting taxpayer can be caught in a technical trap
Incorporated sole traders should be aware that there is a high risk of their company being classified as a Personal Service Company (PSC)
Such a designation makes this form of self-employment financially impossible. Self-employment taxpayers working for employment agencies will be made aware of the need to incorporate but not necessarily aware of the burden of income tax and NIC required resulting in liquidation within a little over a year. Ignoring the problem does not make it go away...
A useful example demonstrating the need for an expert
Tweedledum and Tweedledee are builders who are incorporated as Tdum Ltd and Tdee Ltd and could be based in Manchester or Reading.
Tdum Ltd's only client is Mr Big Developer who has an agreement with Tdum Ltd to work exclusively for him in Manchester or Reading and do jobs as as when requested.Tdum uses Mr B Developer's equipment.
Tdee Ltd looks after property maintenance jobs for the public in Manchester and Reading and has been instructed to proceed by many clients who allow Tdee to make its own arrangements to fulfill its contract with them when mutually convenient .Tdee Ltd uses its own equipment.
Both companies have sales in year 1 and direct costs and overheads of £80,000. The tax treatment is different for Tdum than for Tdee as is deemed to be an employee of Mr Developer and the company is classified as a PSC (personal service company)
|
Tdum Ltd £ |
Tdee Ltd £ |
|
|---|---|---|
| Sales | 100,000 | 100,000 |
| PSC costs, Admin,PAYE & NIC | 49,204 | N/A |
| Balance | 50,796 | 100,000 |
| Total Running Costs | 80,000 | 80,000 |
| (Loss)/Net Profit | (29204) | 20,000 |
If you have come across this problem and are worried call us immediately to arrange a consultation
OUR FEES FOR SERVICES covering the Manchester and Reading areas. Other areas in UK applicable
To prepare accounts our fees are at current fee levels for businesses
which have Sales net of VAT as follows
Under £5000 £200 + VAT
£5,000-£50,000 £500 +VAT
£50,001 -£75,000 £ 900+VAT
£75001 -£125,000 £1,500+VAT
Completion of Self assessment Tax Returns
Simple £100 +VAT
Ordinary £200 +VAT
Complex from £500 + VAT
E FILING SUBSCRIPTION SERVICE Covering Reading and Manchester. Other UK areas by application
Bronze service 3 queries £75
Silver Service 6 queries £120
Gold Service 12 queries £180
All fees payable in advance
To apply use the contact e mail with your personal details and we shall
send you a letter of engagement.
OTHER SERVICES
Fees can be quoted on request
PLEASE NOTE
ALL FEES ARE TAX DEDUCTIBLE. IF YOU HAVE AN ASSESSABLEPROFIT THE NET COST OF FEES TO YOU IS 80% OF THE FEE QUOTED IF YOU ARE STANDARD RATE TAXPAYER AND 60% OF THE FEE QUOTED IF YOU ARE A HIGHER RATE TAX PAYER. In the Case of companies the fee will qualify for Corporation Tax relief
THERE IS ALSO A SAVING FOR TAXPAYERS WHO ARE NOT REGISTERED FOR VAT FOR THE AMOUNT OF VAT CHARGED ON THE FEE WHICH IS TAX DEDUCTIBLE