New to contracting
If you are new to contracting and trade through a Limited Company you should be aware of two advantages open to you of being registered for VAT under the Flat rate scheme and the potential savings of Employer’s National Insurance contributions, if you qualify under the Regional Employer holiday rules.
Most new to contracting – contractors or freelancers operating under the Flat rate VAT scheme (FRS) derive a benefit from the simplified rules of VAT accounting and collect more than they have to pay over each year, especially when the VAT they actually suffer on costs is low. When the VAT rates change on 4th January 2011 this advantage will become even greater so make sure you take full advantage of it.
From 22 June 2010 until September 2013 qualifying new businesses can claim for reduced national insurance payments of up to £5000 (for each of the first 10 new employees of the business for a period of a year). This is due to become law in January 2011- If it is withdrawn you would be back to square one provided you pay any arrears by April 2011
These are examples of the Government supporting investment in new and small businesses which seem to work. I am all in favour of that ! Intouch Contractor Accountants love giving you good news.
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.