Umbrella Legislation Changes Freephone | |

What are the Legislation Changes?  As of April 2016, Umbrella company contractors (and contractors caught by IR35) will no longer be able to offset Travel and Subsistence expenses.  This will affect the take home pay of any contractor that are working through an Umbrella Company. To illustrate, the example below compares both Umbrella contractor A with expenses and Contractor B without expenses. Contractor AContractor B Weekly Income:£2,000 Expenses:£230£30 Employer's NI:£196£220 Employee's NI:£94£98 Employee Tax:£430£501 Total Tax:£720£819 Fees:£30 Total Net Income:£1,249£1,151 Difference£98 per week Contractor A Loses £4,704 per year! How will this affect contractors? Freephone | |

Benefits of going limited  The most tax efficient way for a contractor to be paid  Claim a wide range of expenses  Easy to operate a Limited company; all that’s required is a submission of a timesheet to the agency and updating expenses on a spread sheet for the accountant  Access to the VAT Flat Rate Scheme  Greater tax planning opportunities compared to working through Umbrella or PAYE Estimated Take Home Pay for 16/17 Gross£ Salary 11,000 Expenses 9,600 Pension0 Dividend 63,238 Total Gross 83,838 Net Salary 10,647 Expenses 9,600 Pension0 Dividends (less higher rate tax) 51,061 Total Net per Year 71,308 Total Net per Month5,942 Total Net per Week1,486 EXAMPLE ILLUSTRATION Freephone | | Contractors can increase their take home pay by £11,456 by going Limited!

Our Services Company Formation Service Complimentary On-line Company formation service (normally charged at £125+vat) offers same-day formations and includes opening a Company Bank Account, VAT/PAYE registration and advice on share structure. On-going monthly accountancy service As you would imagine, being director of your own limited company, you will be required to make submissions throughout the year to HM Revenue & Customs and Companies House, however your accountant will guide you at every stage and will also be on hand to answer any questions you may have. Our complete business package covers all your company needs and personal tax affairs for a fixed monthly fee of just £120 + VAT, which is one of the lowest prices in the market. This includes: Completion of Year end accounts Payroll bureau Dividend administration Dealing with Inland Revenue and Companies House Completion of VAT returns Completion of Annual Return Personal Taxation IR35 compliance and solutions Free bookkeeping software Unlimited access to their own dedicated accountant Free face to face meetings in any city across the UK Money back service guarantee with a same day response to calls/ s. Freephone | |

Why choose SJD Accountancy? SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients. We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA UK's Largest contractor accountants with more qualified staff. All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee of £120 plus VAT per month. Freephone | |