Oct
01
2010
Married contractors 'should check against S660A'
Posted by Daniel Frost
Husbands and wives who both carry out contracting work could be vulnerable to S660A taxing, which should serve as a warning to those with an umbrella company who fall into this category.
Seb Maley, who is a freelancer services manager for Qdos Consulting, told Contractor UK that this could arise to partners who are both contracting and the shares that they hold.
For example, contractors who each have ordinary shareholdings within the company where they work are not likely to be affected by Settlements legislation.
However, if partners hold shares in the company other than these, they could be at risk of falling under S660A, which was set up in the 1930s "to stop people settling their income on another person who pays tax at a lower rate", according to Section660a.co.uk.
As a result, Mr Maley, who was answering a question from a contractor who was in this situation, advised anyone in this predicament to check their individual and joint arrangements just to see if they may face any problems in the future.
Husbands and wives who both carry out contracting work could be vulnerable to S660A taxing, which should serve as a warning to those with an umbrella company who fall into this category.
Seb Maley, who is a freelancer services manager for Qdos Consulting, told Contractor UK that this could arise to partners who are both contracting and the shares that they hold.
For example, contractors who each have ordinary shareholdings within the company where they work are not likely to be affected by Settlements legislation.
However, if partners hold shares in the company other than these, they could be at risk of falling under S660A, which was set up in the 1930s "to stop people settling their income on another person who pays tax at a lower rate", according to Section660a.co.uk.
As a result, Mr Maley, who was answering a question from a contractor who was in this situation, advised anyone in this predicament to check their individual and joint arrangements just to see if they may face any problems in the future.