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Readers' forum : Consultant confusion

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08 May 2018

Issue: 4646 / Categories: Forum & Feedback

IR35 and personal companies providing services to associated companies.

I act on behalf of three trading companies: A Ltd B Ltd and C Ltd. These are all controlled by the same two directors Y and Z. However the directors each use individual companies D Ltd and E Ltd which have no purpose other than to tidy things up and they receive management charges from A Ltd B Ltd and C Ltd. The directors then pay themselves through D Ltd and E Ltd by way of salaries and dividends.

On reflection the tax position would be very similar were the directors simply to be paid dividends and salary from each trading company and this option remains. Alternatively I suppose they could eradicate D Ltd and E Ltd and the trading companies could then pay management fees to one company that they would both use as their remunerating vehicle. What is starting to...

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Readers' forum : Consultant confusion

© Copyright LexisNexis 2024. All rights reserved.

08 May 2018

IR35 and personal companies providing services to associated companies.

I act on behalf of three trading companies: A Ltd B Ltd and C Ltd. These are all controlled by the same two directors Y and Z. However the directors each use individual companies D Ltd and E Ltd which have no purpose other than to tidy things up and they receive management charges from A Ltd B Ltd and C Ltd. The directors then pay themselves through D Ltd and E Ltd by way of salaries and dividends.

On reflection the tax position would be very similar were the directors simply to be paid dividends and salary from each trading company and this option remains. Alternatively I suppose they could eradicate D Ltd and E Ltd and the trading companies could then pay management fees to one company that they would both use as their remunerating vehicle. What is starting to...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

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4646

Categories: Forum & Feedback [1]

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