Client Story
How we saved a Colchester professional-services contractor £8,400 a year
Client R is a Colchester-based management and IT consultant working through a Ltd company on contracts with corporate and public-sector clients in the region and London. The company had been set up without much advice, salary set sub-optimally, no dividend planning, no pension contributions, and no documented IR35 assessment of the contracts.
We reviewed everything. We assessed and documented the IR35 status of each contract (outside, given genuine substitution rights, multiple clients and control over delivery), restructured the remuneration to salary at the NIC-optimal level plus dividends, and set up an employer pension contribution of £23,000 a year to his SIPP, tax-deductible for the company and a highly efficient extraction.
Total outcome: annual tax saving of £8,400 through proper remuneration structuring and pension contributions, a documented IR35 position protecting against challenge, and £23,000 a year going tax-efficiently into his pension.