Limited Partnerships for UK Contractors

Limited Partnerships for UK Contractors The new kid on the block is limited partnerships for UK contractors. Previously contractors chose between using onshore umbrella companies, offshore umbrella companies and personal service companies. Very few contractors pay the IR35 tax. Here is how limited partnerships for contractors operate. [caption id="attachment_847" align="alignnone" width="275"] Limited Partnerships for British Contractors[/caption] Self Employed Status for Limited Company Contractors The contractor has self employed status, which is something that few contractors look at. However, the difference is that the self employed contractor sets up in partenrship with a limited company provided by a service provider. This, then, comes under limited partnerships legislation rather than limited company legislation. Limited Partnership Legislation All of the admin work is done by the limited company that the service provider provides. All the contractor does is the contractor work. This is quite a neat solution as it avoids the recent legislation that the Chancellor has brought in to hit umbrella company contractors and personal service company contractors. It doesn't use dividends to cut the contractor's tax bill. For further information on how limited partnerships operate click on limited partnerships for UK contractors. [caption id="attachment_913" align="alignnone" width="215"] Limited Partnerships for UK Contractors[/caption]