Case Study 3: Consultant - Personal Service Company - IR35 Monthly Fee: £85

The Client: Marine Engineer

Status: Company
Turnover: £240,000 per annum
Directors: 1
Staff: None

Service provided by MAAP

MAAP Fee: £85 fee per month
Monthly: Payroll & CIS returns
Quarterly: VAT & trading reports
Annually Company accounts & CT600 tax

Summary

The issue of whether or not IR35 applies to a particular contract is something that has plagued personal service company (PSC) directors for the last ten years.

Ralph Elliott-King has been writing on the subject since the inception of the regulations and has even appeared on TV to discuss the issues concerned. We have also prepared several useful utilities over the years to help you establish your employment status, the latest being the HMRC´s Business Status Test.

Whatever your views on IR35, it remains on the Statute Book and consequently the regulations have to be complied with.

If you are trading as a PSC and worried about the tax treatment of your contracts in respect of IR35, then please feel free to call Ralph Elliott-King on 01202 482121 for a free, no-obligation chat about what concerns you. It seems to us that there are as many people complying unnecessarily with IR35 when they don´t have to, as there are not complying when they should. Each way is as bad as the other.

One other point. It is so easy to tie yourself up in knots over the IR35 conundrum that you forget you have a Company to run as well. Fortunately we don´t and we do the necessary for as little as £70 a month.

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  • The client prepares there own sales invoices and personal expenses using simple summary spreadsheets provided by MAAP.
  • The client keeps all their suppliers’ invoices in either a ‘paid’ or ‘unpaid’ lever-arch file. All we require from the client is to annotate each invoice or batch of invoices as they pay them with the date of payment and the method of payment (cash, cheque, debit or credit card).
  • The client rings through the wages for the month and is provided with payslips and detailed summaries for the end of the month.
  • The client delivers their accounting records on a quarterly basis so we can prepare their VAT quarter return.
  • The client is in constant contact with MAAP during the year, seeking advice and keeping us informed of any new developments on the contracts they undertake. We work together to try and establish the correct employment status for IR35 compliance.
  • MAAP prepares the monthly payroll emails through payslips and reports in good time for the end of month.
  • We deal with the online filing of monthly or quarterly payroll returns as well preparing the year end P35 returns in April each year.
  • Upon receipt of the quarterly paperwork, MAAP writes up the Sales Day Books (SDB), Purchase Day Book (PDB) and prepares and reconciles the bank records to date. We then calculate the VAT and return the records to the client in good time for the client to approve the figures and allow us to e-file the VAT return with the HMRC.
  • The quarterly reports we supply allows the client to review turnover and expenditure to date as well as the estimated bottom line profit for the year to date.
  • At the end of the year we collate the information we have already processed to produce the statutory financial statements to be filed with Companies House, as well as the CT600 Corporation Tax return for filing with the HMRC. We also prepare and submit the director´s personal Self Assessment tax returns.
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Client Case Studies

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Call 01202 482121 for a free consultation.

MAAP Accountants
Sigma House, 44 Willow Way
Christchurch, Dorset, BH23 1LA
Tel: 01202 482121
info@maap.co.uk