Our Composite Company Services

In view of recent changes we have ensured that our Composite Services are fully compliant with the content of the Finance Bill and fully subject to PAYE and NI.

If you have earnings over £50,000 per annum we may be able to offer alternative tax planning arrangements, please call the office and ask for Richard for further details.

This list gives a brief description of the nature of our Composite contractor services. We will be delighted to explain and discuss any aspect in detail with you.

Company books and records We will maintain ALL the records of the company, including bank accounts, accounting records, statutory matters and annual accounts prepared and submitted to both the Registrar of Companies and HM Inspector of Taxes. You will have a contract of employment with the composite company, who in turn, will contract with your agency to provide services to the end client.

Invoicing Each month or week, we will prepare an invoice based on copies of your timesheets, which can be sent to us by fax, e-mail or post. The original timesheets must be submitted to your agency each week or month. In order for us to meet payment deadlines, it is vital that you transmit a copy of your timesheet to us as soon as possible.

Payroll Each month we will process your salary on the company payroll. The payslips are posted to you and the PAYE and NIC is sent to the Collector of Taxes directly.

Value added tax The company is registered for VAT in the UK. The net payment will be made to your bank within three working days from when we receive funds from your agency or client.

Expenses One of the main advantages of being in a limited company is being able to claim Tax-free expenses. We will provide you with an expense claim form for you to reclaim reimbursement of necessary business expenses paid by yourself on behalf of the company. Expenses will be remitted to you with your payment but will not be subject to tax or National Insurance. We must stress however that expenses you claim merely reduce your personal tax bill on the dividend and they are not reimbursed by the limited company, although your agency may agree to do so. There is no statutory definition of what is allowable. The official rule is that each expense must be “wholly, exclusively and necessarily” incurred in the performance of your duties as an employee of the company. Below are other expenses that may be allowed.

• Postage
• Stationery
• Software
• Facsimile
• Telephone
• Travel
• Accommodation
• Subsistence
• Petrol
• Books
• Car mileage
• Computer costs
• Professional Subscriptions
• Training

Getting started with Composite Contracting!

What needs to be done? Simple! All you have to do is make sure you have your completed timesheet sent to us. How easy is it to get paid through a composite company? In general there will be three companies involved. They are your agency, LowTax and the company that you are providing a service for. When you send us your timesheet we raise an invoice on your behalf, wait for the agency to pay the invoice and then we pay the money to you.

What Deductions are going to be made? There are three or four deductions that we will make depending on your circumstances. 

 - Tax & National Insurance Contributions. Firstly, with every payment we will be deducting PAYE Tax and National Insurance contributions. We keep your salary amount low so minimal contributions will be made. Although the company states that you are an employee you will still be responsible for the Employers National Insurance Contributions. 

 - Fees. Secondly we will be deducting our fees. If you would like to be paid weekly or two-weekly we will take a £20 fee of your weekly/two-weekly gross income or £60 if you would prefer monthly transfers.