dotdash
July 2nd, 2007, 10:34 AM
Hi all,
I’m a developing affiliate marketer. My main source of income is from IT contracting which I do out of my own Ltd company. I’ve been advised by my accountant and an IFA to not put my internet marketing income through the company but do act as a sole trader for that as there are more tax benefits.
I’m not particularly out to nark off the taxman but there is a nasty legislation called IR35 which threatens my income from contracting – it’s complicated and I won’t bore you with the details – but one of the factors for staying outside of this legislation is the ‘nature of my business’ and how much I ‘appear to be in business’ as opposed to a ‘disguised employee’ using a Ltd company for tax avoidance.
If I were to bring my internet marketing activities inside my Ltd I think that might help me in the event of a visit from Hector, particularly as I might be doing some Adwords management, blog set ups, SEO and other consulting on the side which I advertise on my company website. I do tech support as my day job contracting but the internet marketing consulting is looking like it might start kicking off. I would prefer to have them under the same umbrella.
I am very much in business for myself and would prefer it if I didn’t have to jump through all these hoops but Gordon Brown seems hell bent on whacking IT contractors every opportunity he has.
I suppose my real question is – if you already had an IT related Ltd company would you operate your online business through the Ltd or as a sole trader?
I’m a developing affiliate marketer. My main source of income is from IT contracting which I do out of my own Ltd company. I’ve been advised by my accountant and an IFA to not put my internet marketing income through the company but do act as a sole trader for that as there are more tax benefits.
I’m not particularly out to nark off the taxman but there is a nasty legislation called IR35 which threatens my income from contracting – it’s complicated and I won’t bore you with the details – but one of the factors for staying outside of this legislation is the ‘nature of my business’ and how much I ‘appear to be in business’ as opposed to a ‘disguised employee’ using a Ltd company for tax avoidance.
If I were to bring my internet marketing activities inside my Ltd I think that might help me in the event of a visit from Hector, particularly as I might be doing some Adwords management, blog set ups, SEO and other consulting on the side which I advertise on my company website. I do tech support as my day job contracting but the internet marketing consulting is looking like it might start kicking off. I would prefer to have them under the same umbrella.
I am very much in business for myself and would prefer it if I didn’t have to jump through all these hoops but Gordon Brown seems hell bent on whacking IT contractors every opportunity he has.
I suppose my real question is – if you already had an IT related Ltd company would you operate your online business through the Ltd or as a sole trader?
