Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi. I have been a NHS Hospital consultant until recently. I have recently started to have a career as a locum consultant. I am currently with a healthcare contractor and have started a limited company as advised. I was advised that I would get 85% in returns. I was also promised that the process includes "full IR35 review to ensure compliance". I originally rushed into it due to the attractive returns. Now, I am very concerned after reading some recent articles in the web that HMRC are particularly coming down hard on these "aggressive tax avoidance" schemes. what are my options?
Thanks a lot for your prompt reply. I absolutely understand the jest of your answer. However, as an expert, I will be grateful if you can briefly clarify on the following issue: My understanding (limited as I really have a poor understanding of the economics of these issues!) is that as a self employed, one goes through the "normal" PAYE channel (paying 40% tax) and the other channels are working through one's own limited company and this offshore healthcare contractor arrangement (paid as dividends, loans etc). I am inclined to think that you may not be in a position to give a yes or no answer for this one: Do you think I should continue paying the taxes through self assessment for all my earnings (as usual) or try and manage my earnings through a limited company with the help from an accountant? I will be grateful for your guidance. Many thanks