A limited company IFA is staffed by self-employed advisors. All business is conducted in the limited company name and the advisors earn a percentage of the commission with fixed deductions for contributing to overheads and regulatory costs.
One of the advisors has approached me to consider incorporating. Under normal circumstances I would be encouraging, but off the top of my head I am also thinking 'audit requirement' and 'IR35'. I wonder if anyone has advice to offer in respect of these particular circumstances?
Thanks in advance
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Its Down to Regulation
The IFA company is registered with FSA or whatever they are called and is regulated by FSA etc and pays for PI cover, provides marketing & admin support to the individuals advisors. Its a cost sharing thing as individually the compliance cost is substantial for a 1 man band. Most Independent IFA are set up this way. ST James Place use same set up. I act for an advisor who works under this set up who trades as Ltd Co and have no issues. He has to pay a retainer and a percentage of his commission over to cover compliance costs and marketing, office & admin support. He reckons the tipping point when it becomes viable to trade without the umbrella is when you are paying more than £30k per year to the Head Co. PM if you want to know the crack.