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When it comes to contractor work in the UK, the IR35 legislation can significantly affect your income, tax obligations, and the overall financial structure of your business. Contractors working outside IR35 can typically maximize their take-home pay by operating through a limited company, enjoying more flexibility and tax benefits. Our  Outside IR35 Calculator  helps you estimate your net income based on your contract rate, expenses, and other factors, giving you a clear view of what you can take home. What is IR35? IR35 is a tax legislation designed to combat tax avoidance by workers who supply their services through an intermediary, such as a personal service company (PSC), but would otherwise be considered employees if the intermediary didn’t exist. If you’re deemed to be inside IR35, you’re treated like an employee for tax purposes and subjected to PAYE (Pay As You Earn) tax and National Insurance contributions (NICs). On the other hand, if your contract is deemed to be ou...

When starting a business in the UK, one of the most crucial decisions you’ll make is choosing the right legal structure. A popular choice among entrepreneurs and small business owners is the  limited company . But what exactly does this term mean, and what are the different types of limited companies available in the UK? This article will provide an in-depth look at what a limited company is, explore its various forms, and discuss the benefits and considerations involved in setting one up. What is a Limited Company A limited company is a type of business structure where the company's finances are separate from the personal finances of its owners. This means that the company's debts and liabilities are the responsibility of the company itself, not the individual shareholders or directors. The term "limited" refers to the limited liability of the company's shareholders, meaning they are only responsible for the company’s debts up to the amount they originally invest...

  A sole trader, also known as a sole proprietor, is a self-employed individual who operates their business as the sole owner and manager. In the United Kingdom, a  sole trader  is the simplest and most common form of business structure. As a sole trader, you are responsible for making all business decisions and are entitled to all the profits generated by the business. However, you are also personally liable for any debts or losses incurred by the business. How to Become a Sole Trader in the UK? Becoming a sole trader is a straightforward process. To start, you need to choose a business name, though you can also trade under your own name. Registering your business with HMRC is a crucial step. You will need to keep accurate financial records, including income and expenses, and report your earnings through a  Self-Assessment tax return  each year. This ensures that you’re paying the appropriate income tax and National Insurance contributions. Sole Trader Advantag...