Are you a contractor? If you work for someone else, it is important to know whether you are working for that person in an employed capacity or in a self-employed capacity as an independent contractor.
Your employment status will determine the charge to tax on income from your employment or self-employment. It will also determine the class of NICs, which are to be paid.
Umbrella Companies employ you for tax purposes and complete central returns for all their contractors. It's less hassle and more flexible for you but take home pay is typically less than that the limited company option.
The best option for you depends on your plans, 'one off' contract or 'contractor for life'? [Read More...]
Contractors work to a different tune, full-time salaried employees have their line manager to judge themselves by - the contractor has their current assignment.
Working as a freelance contractor means you need to up your game. Rarely does the 'big company' mentality produce an effective contract worker. Working through your own limited company means you can't slack and hide behind layers of staff and internal procedures.
Working ‘late' doesn't exist, you no longer have set hours or days you have to sit at your desk tapping away. There is no coalface in your life anymore. Every minute at work is a pleasure which you revel in and hope it never ends.
You're doing what you like, and what you're good at. You're a craftsman delighting in creating a product that has your unique talent stamped all over it. Only you know what effort is required to produce excellence - it's not about hours or comparing yourself to someone else's effort.
When you're a contractor working through your own limited company, there's more to your daily routine than just going through your inbox, going through the motions, ticking boxes. Every day the best contractors are those who want to produce more, better and faster.
You won't be happy until you achieve perfection, and perfection is impossible achieve. You want to do more work, it gives you a chance to show-off your skills, your craftsmanship. Mistakes just spur you on more - it means you are learning and improving your talent.
The job of full-time managers is to get the most out of their full-time staff for the minimum payment and benefits. The job of the full-time staff is to do the least possible work for the maximum possible financial reward. It's employee versus employer.
Freelance contractors want to do more work. They want to do it better than they did before, and they want to do it quicker.
It's a mind-set thing.
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It's the basics... Compliance with Tax, VAT, PAYE and fiscal arrangements is mandatory for contractors regardless of whether you use an umbrella company or your own limited company.
Incredible then that there are still rogue umbrella companies and limited company accountants who expose their contractors to fraud. Umbrella Compare provides THE solution, we thoroughly vet all umbrella companies and limited company accountants that we list [Read more...].
Umbrella Compare provides a holistic overview of contracting with the aim of helping new and old contractors find the right payroll solutions. Contracting should be about focusing on the contract, not payroll, accounting, HMRC and bureaucracy.