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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4414
Experience:  FCCA FCMA CGMA ACIS
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I work part time. I am a 40% tax payer, I have decided to do

Customer Question

I work part time. I am a 40% tax payer, I have decided to do additional work at different locations as a locum. Can I open a limited company and pay these additional monies in it to build up funds and then use them at a later stage(not for drawings or dividends) but for long term investment due to lower rate of corporation tax
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to hwlp you with your question.

You could do this. but I would advise you not to pay moneys into the company, but have your fees invoiced by that organisation direct. Even then you might be caught by ir35, an anti avoidance measure. You can read all about it here:

https://www.gov.uk/guidance/ir35-find-out-if-it-applies

I have a shrewd suspicion that this directive would apply to the scenario set out in your question so you will still be liable to NI ans income tax at your marginal rate.

I am so sorry to have to rain on your parade.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.

Thank you for your advice.

Expert:  bigduckontax replied 1 year ago.

Delighted to have been of assistance.

Thank you for your support.