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bigduckontax
bigduckontax, Accountant
Category: Tax
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I have been asked by a recruitment agency to complete a Limited

Customer Question

I have been asked by a recruitment agency to complete a 'Limited company questionnaire' & need advice on completing the questions.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

However, I do need to know the exact content of the questionnaire? It seems a trifle obscure at present.
Customer: replied 3 years ago.

























































No



QUESTION



YES



1













Does your Company use the services of a 3rd party, a service provider or another company in your group as a service provider (other than a recruitment agency or a firm that is solely providing legal or accountancy advice in a professional capacity) to deliver the work product?



If Yes, please provide the 3rd party’s name & address and any trading name below:



If No, please go straight to Question 4.





2



Does the above named 3rd party influence or control your Company’s finances or any of its activities, including how the calculation of payments to individual Workers are made?






3



Does the above named 3rd party benefit financially on an ongoing basis from its involvement in the provision of the Company’s services?






4



Does the Company engage with any intermediaries, whether onshore (either an incorporated or unincorporated body in the UK) or offshore (either an incorporated or unincorporated body outside the UK) in any part of the contracting chain between the Company and its Worker?


(An unincorporated body includes entities such as partnerships).






5



Does the Company engage its Worker on a self employed basis, e.g. as a sole trader or as a member of an unincorporated partnership?






6



Does the Company directly engage its Worker as its employee/Director?






7



Does the Company: (i) pay its Worker either regular monthly employment remuneration; and / or (ii) have a contract of employment with its Worker?






8



Does the Company account to HMRC for all UK PAYE and NIC deductions (other than allowable business expenses) from all employment remuneration paid by the Company to its Worker(s) in consequence of the Assignment(s) performed for Robert Half’s clients?



If Yes, please indicate below the documents you are submitting as evidence that the tax and NIC deductions are / will be made e.g. an original letter signed by your accountant, copy payslip, P45, P60, copy signed contract of employment. NB: evidence must be current and identify you and the Company.




If No, please provide further details including details of all methods and frequency of remuneration together with supporting evidence.








9



Does the Company comply with all relevant UK Tax legislation including without limitation the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) as amended?





Expert:  bigduckontax replied 3 years ago.
Right, I've got it. What is your exact problem, please?
Customer: replied 3 years ago.

I work outside IR35 & don't want to trip myself up, I am the sole Director of a UK Ltd Company, my turnover less than £100k pa, I am paid on a daily rate & I am UK VAT registered.


 


I have previously only ever taken dividends, but this year I intend to take dividends & the threshold salary as advised by my accountant.


 


 


 


I need help with Question 4:


 


Does the Company engage its Worker on a self employed basis, e.g. as a sole trader or as a member of an unincorporated partnership?



Question 5:


 


Does the Company directly engage its Worker as its employee/Director?




& question 6:



Does the Company: (i) pay its Worker either regular monthly employment remuneration; and / or (ii) have a contract of employment with its Worker


 


Thankyou

Expert:  bigduckontax replied 3 years ago.
A Director of a company is by definition and employee and must be paid under PAYE arrangements. Answer to Question 4 is thus 'No.' To the other two questions it is 'Yes.'

If, as a Director you receive all your fees and emoluments through PAYE as you legally should. you have, as an Australian would say, no worries!

I assume that you are aware that the company may also pay into a private pension fund on your behalf and set off the the payments against Corporation Tax. Alternatively you can do the same yourself and top slice your income at the highest rates of Income Tax. In both cases the maximum contribution is 100% of salary or 40K, whichever is the lower.

I do hope I have helped you in this matter.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.