Limited Partnerships v Limited Companies
There is a new Limited Partnerships v Limited Companies scenario for UK Contractors.
UK Contractors normally choose between the umbrella company route or the limited company route.
However, there is now another choice if they eschew the umbrella company route.
Even if they go for the ltd company route they can still use efficient tax planning to get returns of 85% or maybe even more.
Let’s look at limited partnerships first.
Albany have a very good, in fact unique, limited partnership product.
The UK Contractor has self-employed status.
Normally that gives him, or her, liability because they are not in a limited company which gives them limited liability.
However, Albany doesn’t set the contractor up with a partnership with another person, which would give the UK contractor responsibilities.
They set up the contractor in partnership with a company, which they set up, rather than with an individual.
The company they set up takes all the actions and has all the responsibilities which means that the contractor has none – and therefore no liability.
Using UK Legislation on Loans
It uses UK legislation that means that:-
1. Loans aren’t taxable.
2. Loans lapse on someone’s death. They are not inherited.
Contractor Pays UK Tax
The contractor pays a certain amount of UK tax to keep him, or her, in the system and gets loans in lieu of the other money he, or she, gets.
The loan is initially for a 10-year period. However, it rolls on after that.
It keeps rolling on till the contractor dies when it lapses. So, the contractor never has to pay it back.
Making Loans Taxable
The only ways that the UK Government could beat that would be to make loans taxable or to make loans payable after death.
The former would scupper our banking system, which is a huge earner for the UK, and the latter would cause a huge outcry.
To find out more about limited partnerships or to apply for Albany’s limited partnership product you should click on 85% Returns Via Limited Partnerships.
Efficient Tax Planning with Limited Companies
Even using Limited Companies contractors can still get 85% returns on their money by using efficient tax planning.
For examples of those see 85%Returns Using Limited Companies
So, there is more than one way to skin a cat in the limited partnerships v limited companies debate. Choose the one that is best for you.