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...]
Is it worth it? Well, you can run any type of insurance if there's someone willing to pay the premiums....
IR35 and legal expenses insurance policy is designed to take away the stress and worry of a taxation or legal action being taken against their contractor limited company.
Such an insurance policy will cost around £100 a year. Given that you should be aware whether or not your contract assignment is caught by IR35 before you accept the job, it is debateable whether this particular insurance represents value for money.
Your IR35 insurance premium will buy you around £100,000 worth of legal expenses cover. In general, this will give you;
At worst, this insurance product may buy you peace of mind.
You can see if you fall Inside or Outside of IR35 using the IR35 Status Calculator
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If you are or plan to be a freelance contractor, you must get to grips with IR35. Ignore IR35 and it could cost you thousands!
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.