A top ten question asked to us by people thinking of going contracting is , ‘if I go contracting will I be able to get a mortgage?’ Continue reading
You may have been contracting for a while using an umbrella company and have decided that contracting is for you, and are thinking of making a longer term commitment and have decided that you would like to have your own limited company as it seems a more beneficial arrangement for the long term, or perhaps you view the umbrella company expensive in terms of tax suffered or accounting charges. Continue reading
Most contractors will get their work through an agency, occasionally a contractor will contract direct with an end client, but this is not the normal scenario. Continue reading
Contracting is not for everyone, if you crave security and company perks then it is not for you, but if an absence of company politics, challenging work and generally better renumeration are of interest then contracting is worth considering.
Perhaps a good place to start your research about contracting is the job sites on the internet to see if there is any demand for the skills you are selling in the contractor market and what the rates are. Continue reading
The PCG or Professional Contractors Group to give it, its full title is an organisation formed by a group of freelancers who grouped together in 1999 to form a trade organisation to lobby against IR35 and promote freelancing and contracting as a way of working. Continue reading
Benjamin Franklin’s famous quote ‘ in this world nothing can be certain but death and taxes’ is often quoted by people to highlight how it is impossible to escape taxes, they will always catch up with you, like death.
But avoidance of taxes is big business, and always makes for an interesting story in the press with celebraties such as Norman Wisdom, Ken Dodd, Jimmy Carr and Gary Barlow, all attracting unwanted column inches around their tax affairs.
Like most things in the history of our planet, Income Tax is a modern invention being introduced in Britain by William Pitt the Younger in his budget of 1798 to pay for the Napoleonic Wars. Income tax started at 2% and increased to a maximum of 10% and it stayed in pleace until 1802 when it was abolished and it raised around £6m for the war effort.
Income tax was reintroduced on a permanent basis by Sir Robert Peel in the Income tax Act of 1842 and has remained ever since.
The government has tweeked the rates over the years to provide stimulation for the economy or to cover deficits in spending wiht the highest recorded rate of income tax being in the Second World War at 99.25% currently (2012) the rate is 50%, 45% from 2013.
Of all the taxes collected by HMRC it is generally the largest revenue collector, amounding for around 1/3 of all taxes collected around £150bn per annum.
If you have UK source income then the answer is generally yes, there are a few exceptions such as the private arrangements the monarchy has with HMRC or if you are a charity, but in general Benjamin Franklin had in right in his quote ‘ in this world nothing can be certain but death and taxes’.
If you have any questions around your income tax, freelancer accounting is a leading provider of accountancy and taxation services to freelancers and contractors in London and the South East of England, and we would be delighted to talk with you.
Freelancer Accounting helps many contractors who are new to freelancing and contracting, in London, Canary Wharf, Reading, Richmond and Guildford so we know how daunting it is to most people, especially if you have worked as an employee under PAYE, and had everything taken care of for you.
You needn’t be out of your comfort zone, as it may be new to you, but we are old hands at contracting, and are accredited by the PCG as well as being regulated by the ACCA and partnered with many leading contractor suppliers such as Cater Allen, Caunce OHara and Contractor Financials.
We can talk you through what are your options. Whether an umbrella company or a limited company would be best.
If required we can form your limited company for you and register it with HMRC for corporation tax, Payroll and VAT. We can assist you in obtaining a business bank account.
And also advise you on specialist areas of taxation such as the settlement legislation and IR35.
We talk you through what business expenses can be claimed against tax, and the responsibilities that working through a limited company entails.
We also have an online portal, which has lots of useful information to help you along your contracting career, which all clients have acess to, as well as our online accounting software that is available to you 24/7 and telephone support during office hours.
Why not give us a call, or take advantage of a free initial consultation?