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...]
Certain types of work that are linked to the construction industry aren't covered by CIS. For example, work done by businesses like architects and surveyors isn't covered. Fitting flooring like laminate and vinyl is covered by CIS, but carpet fitting isn't.
There are some situations when a business or organisation that would normally be a mainstream or deemed contractor may not have to apply the CIS rules for contractors. For example, certain businesses that would otherwise be deemed contractors don't need to apply the CIS scheme when they pay for construction work on property used for the purposes of their own business.
The types of property covered by this exemption include offices, warehouses and nursing homes, as well as other facilities used by the business. The normal CIS rules for contractors also don't apply when:
Private householders are never treated as CIS contractors, no matter how much they spend on construction operations.
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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.