Hello Colleagues;
I am attached to a small practice where I am in charged of a small portfolio of clients.
I was recently approached by two new clients who are on Payroll with NHS. In addition, they do bank work as Nurses with a Recruitment Agency. They thought they could save tax if they were to be paid for their bank work with the Agency through an incorporated company.
I have never dealt with Managed Services Companies, I need your professional guidance on how to account for these types of companies. Can I advice future clients to rather register as Self-Employed for their second job if possible?
Thanks for your kind help, very much appreciated.
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Confusion. You refer to
Confusion. You refer to register as "self employed". I assume that the nurses' agency either offers payment via PAYE or into a limited company. I would be staggered if the agency accepted an invoice from sole trader.
Are all your current clients sole traders and partnerships or do you have LTDs too?
Sole Traders, Partnerships and Limited Companies Clients
Thanks Smith; I have Sole Traders, Partnerships and Limited liability Companies Clients. These nurses I am talking about have registered limited companies through which they are are now being paid by the Recruitment Agency. What I would like to know is:
Are their travelling and other work related expenses allowable for tax purposes under their registered companies since they would be on PAYE under their registered companies?
I understand there are some rules regarding Managed Services Companies. I need help.
Thanks for your time.
There may be ir35 issues. i would say that travel to various hospitals was allowable. the biggest tax saving is ct as opposed to paye not necessarily exense claims that may be open to challenge