Tax Avoidance Schemes
Many contractors are now using tax avoidance schemes such as offshore umbrella companies.
These can allow contractors to keep 85% or more of their money. There are also a number of alternatives to those, that are just as tax efficient.
There are limited partmerships for contractors and tax-effieicent limited companies. Boith return 85% or more.
Limited Partnerships for UK Contractors
In limited partnerships the contractor has self employed status. He, or she, partners with a limited company set up by the service provider. They then use effieicent tax planning so that the contractors is able to get 85% of his money back again.
Tax-efficient limited companies allow contractors to continue to use their limited companies but use UK law to cut their tax bill.
They are, of course, tax avoindance but that is legal unlike tax evasion which is not.[caption id="attachment_874" align="alignnone" width="259"] Tax Avoidance Schemes for uK contractors[/caption]