With April’s tax changes looming, everyone’s wondering what life after limited and umbrella companies will look like. Limited companies have been favoured by contractors and employment agencies alike in past years, providing tax benefits to the contractor and indemnity for the employment agency. All that is about to change. HMRC has revised the dividend tax faced by limited companies (PSCs). The changes will take effect as of April 2016. It is HMRC’s view that limited companies are being used unfairly. In a government memo, HMRC estimated only 1 in 10 personal service companies (or limited companies) operate correctly within the current IR35s rules . The April tax changes target umbrella companies too. Contractors in umbrellas will not be able to use expenses as part of a payroll calculation. The debate has been the umbrella company versus the limited company – which is better? After April 2016, the future of both structures is in doubt and raises questions about where contractors should turn next. Full article: http://oneconsultant.org/legislative-changes/limited-company-is-limiting-come-april-2016/