In the year 2000 HM Treasury brought in legislation which meant anyone working similar to full time employment would be taxed as if they were in full time employment. This Legislation was called IR35, also known as Legislation on Intermediaries, Finance Act 2000.

Fortunately this did have some important exemptions but those contractors caught by this Legislation would have to work under PAYE (with either the Agency they were using or through an Umbrella solution which would be a separate company offering higher benefits and take-home pay). Others could stay in their Limited Companies and were not affected.

A new solution called a Composite Company was also born for those who were not caught by this Legislation but their situation differed from those running their own Limited Company.

This is where Legal-E came in. Our Chief Executive, with his extensive legal background especially in Contract Law, was ideally placed to check any contract and make a determination for each sector and each individual circumstance, so he set up Legal-E Limited.

Chartered Accountants who were already looking after Limited Company clients and Umbrella Companies that were setting up due to this big change (at the time these were known as “Managed Service Companies”) used Legal-E to check every single contract and ensure each contractor was directed into the most tax efficient and fully legal solution. At first, an initial review would be carried out to be absolutely sure which solution would suit each person. If the contractor was not caught under IR35 and did not have to go PAYE they would have a full review this would be sent in their welcome pack. Depending on the requirement and budget of the contractor, either a 5-page Legal Report or a Certificate of Compliance would be provided.

The companies that used Legal-E went on to become some of the most successful in the market, this was until, new legislation was introduced. The new laws meant that Composite Companies were no longer viable. The Managed Service Companies who ran those Composites could no longer operate and effectively disappeared.

An important exception to this new legislation was for Accountants and Lawyers who were advising companies in their normal course of business. As long as the Accountants and Lawyers were not providing “off the shelf” solutions as Managed Service Companies did could continue to help their clients as before.

Due to our pivotal part in the market, our years of knowledge and contacts, we realised we had everything needed to not only check contracts but to take on clients ourselves. To accommodate this growth and more importantly reflect our professional base Legal-E Limited evolved into Legal-E LLP.

We have a team of experts with successful backgrounds in the industry and extensive knowledge. We are happy that this guarantees peace of mind for every client, safe in the knowledge that they are not just working legally and in line with Inland Revenue legislation but are also taking home as much as they possibly can.

We have tried and tested every way of making a perfect Umbrella service so you really are getting the best service and advice by joining Legal-E LLP and as we are from a legal background are fully able to advise our Limited Company clients in many aspects of their business. This does not include just tax matters but ranges to Employment Law and questions on IP (Intellectual Property).