What if I already have a company set up?
It is very straight forward to appoint Alvin Lawrence & Co to take over the administration for you.

What if my contract fails IR35?
The contract would be treated as within IR35 and the required tax and NI would be charged on the company’s total turnover less certain allowable expenses.

Does National Minimum Wage apply to Directors?
No. However, we will advise you on this and recommend the level of salary which is most appropriate for you personally.

Will I need to register and pay VAT?
VAT registration is compulsory if the company’s turnover exceeds £68,000 in the previous 12 months. It may also be beneficial for companies to register for the VAT flat rate scheme if their estimated taxable turnover (excluding VAT) for the next year is £150,000 or less.

Can I claim expenses? If so what can I claim for?
Yes, you should claim all legitimate business expenses to increase tax efficiency and ultimately increase net income. We can provide detailed guides and advice on what can be claimed.

Do all expenses require receipts?
Yes, other than business mileage for which a log should be maintained.

Can I claim working from home?
This can be a complex area. HMRC normally allows a small amount of £2.50 per week without question. Anything higher can require more complex calculations.

Can I have a spouse working within the business?
We would need to know the facts before advising on this. However, as a general rule you can pay your spouse a small salary but reasonable salary – equal to what you would pay to a third party for the same duties - and must actually be paid to your spouse. Your spouse can be a shareholder in your business and receive dividends. Again the facts would need to be established before advising.

What percentage of my gross income can I expect to take home?
This is dependant upon your individual circumstances and status under IR35.

Are my National Insurance (NI) contributions made for me?
We will prepare the monthly payroll and provide you with a wage summary that shows you how much needs to be paid to HM Revenue & Customs for tax and National Insurance contributions.

What happens when I join?
We can form your company for you, and if you require, we can assist in opening a company bank account for you. We will also register you and your company with all of the relevant government bodies.

How long does it take to set up the Limited Company?
Normally 24-48 hours.

Where will the registered address for my limited company be?
This will be an address of your choosing. However, you may use Alvin Lawrence & Co’s address. There is a fee for this service of £50 plus VAT pa.

I already have a Limited Company can I still use your service?
Yes, all we require are the details of your existing company and we will set up the service for you.

How is corporation tax applied?
Corporation tax is payable on business profits 9 months after the company’s year end, and is not affected by the level of dividends drawn. Higher rate personal tax is payable on the dividends which bring you into the higher tax bracket. The amount payable will be calculated when you prepare your personal tax return.

Is there a 'tie in' period?
There is no tie in period during which you cannot leave and you do not have to commit to pay us a certain amount. The fees would cover the month in which you joined us to the end of the month in which you leave.

What’s the difference between a PAYE Umbrella Service and a Limited Company Solution?
Limited Company
If you expect to remain contracting for a long-term period then using a Limited company is usually the best option. However, the impact of IR35 legislation on your business is an important factor which must be considered before going down this route.

Incorporating and running your own company can lead to higher net returns after tax. However; as the director of your own company, a higher level of accountability and management is required. We aim to make this part easier for you.

PAYE Umbrella Company
The administrative burdens of running your own limited company are eliminated if you use the services of an umbrella company yet giving you the benefit of being legally tax-efficient. You become an employee of the Umbrella Company and therefore IR35 contractors’ tax does not apply. You get paid regularly and on time, with tax and National Insurance contributions deducted at source. You will still, however, incur a regular monthly fee that is paid to the Umbrella Company. The Umbrella option is suitable if you are new to contracting and may not want the initial commitment of running your own Limited Company.

Why should I use Alvin Lawrence & Co?
We provide a high quality service at a fixed fee to meet the complex day to day needs of businesses.

We aim to ensure that all our clients are treated fairly, regardless of business size, income or profitability.

We will ensure that you get the very best advice and service to ensure you run your Limited Company as effectively and cost efficiently as possible.