Almost all contractors who provide professional services to clients trade via their own limited companies, or join PAYE umbrella schemes. Here we've compiled a table to help compare the pros and cons of each structure. … [more]
First Timer or Veteran Contractor?
Very few contractors regret their decision to break with traditional employment and start out on their own. Our site provides all the information you'll need to operate a successful professional contracting business - whether you're thinking of taking the plunge, or if you're a seasoned pro.
Many people have outstanding student loans when they start contracting, but how do you calculate and make repayments if you're working for yourself, and not a 'traditional' employer? … [more]
If you need to buy a new PC or upgrade your software, how are these expenses treated for tax purposes? Here we explain how technology costs are accounted for, and look at the rules which govern the treatment of computer-related purchases. … [more]
The Employment Allowance reduces the amount of National Insurance employers have to pay by up to £3,000 per year. So, can your limited company benefit from this tax incentive? … [more]
In addition to your personal income tax liability, if your contracting salary is above the prevailing thresholds, both you and your company (limited or umbrella) will need to pay National Insurance Contributions to HMRC. … [more]
The retained profits generated by UK companies of all sizes can be distributed to shareholders. For professional workers (such as contractors, consultants, and freelancers), dividends make up the bulk of income drawn down from small limited … [more]
Working out the most tax-efficient way to draw down income from your company should be a priority for limited company owners. In this article, we explain how to establish your optimum salary level in 2019/20, what dividends are, and how they are … [more]
Contractors receiving their first umbrella company payslip can sometimes find it challenging to understand exactly how their pay has been calculated and what deductions have been made. However, the actual payslip is fairly straightforward to … [more]
When you first register your company with HMRC as an employer, you’ll receive all sorts of information and reference numbers in your official welcome pack. One to look out for – and keep safe – is your Employer Reference Number (ERN). … [more]
Nothing makes critics of the IR35 'off-payroll' legislation (and there are many) more irate than the mention of CEST - the official online tool which is meant to help determine employment status. … [more]