Yes, you can do that - that's why it was so lucrative

Mainly because of the avoidance of personal tax and employer NI (your company & the dividends are still subject to tax, but at no more than 25% I think). But Brown introduced a new rule a few years ago. Essentially if you look like an employee of the company you're contracted to (& the actual contract is very nearly irrelevant) then you will be taxed on the fee paid to your company - not on what you pay yourself. There's now a few more hoops to jump through ... Find an accountant that specialises in this sort of thing - it shouldn't cost more than several hundred quid a year - depending on how much management is done by the accountant and you'll probably save that & more in time not spent sorting it all out yourself.

Posted By: BerlinCanary on August 8th 2005 at 18:05:12

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