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...]
The 1st of October 2011, is drawing ever closer. The date is important because that's when the Agency Workers Regulations will be implemented.
The staffing industry has been searching for legitimate means of ensuring freelance contractors are not unduly affected by these employment laws.
Does this legislation spell bad news for the UK's temporary workforce? Will freelance contractors be adversely affected?
Whereas some commentators fear AWR will be a crushing blow to the sector: "Our robust, compliant and concise solutions will take much of the sting out of the regulations. We are committed to ensuring that our clients and the staffing agencies that we work with continue to receive a seamless service that they can rely on."
Contractors Umbrella Company (CUC) have confirmed that they will be offering 4 predominant solutions in response to the regulations.
What will be the effect of AWR on important industry relationships? Will umbrella companies and recruitment agencies drift ever further apart?
Not so, claims CUC. Quite the opposite:
"The regulations should be viewed as an opportunity to develop stronger relationships within the supply chain.
"Collaboration has become an important factor in complying with AWR and we anticipate working even more closely with staffing companies."
CUC are a robust and award winning contractor accounting firm, so their approach can be relied upon. But what about those recruitment agencies that still have concerns?
"We would like to encourage any staffing firms that are still unsure on how the regulations will impact their operations, to get in touch with CUC. We are more than happy to help."
AWR (Agency Workers Regulations) simplified.
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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.