What insurance do you need as a contractor?

When starting up as a contractor, taking out appropriate insurance should be one of the top things on your to-do list.

 

Why do you need it?

Rather than being just another cost to factor in, insurance can help you secure that first contract, as most clients and agencies will insist that you’re sufficiently insured before investing in your services.

There are other benefits in seeking protection from insurance, beyond the obvious peace of mind that it brings: it provides you with cover should you be accused of causing property or reputational damage. Insurance also acts as a key IR35 status indicator, signifying to HMRC that you’re genuinely self-employed and not a ‘disguised employee’.

To put it plainly, having appropriate protection in place makes business sense and gives you credibility. The question is, what business insurance do you need?

The answer will vary depending on your area of business. But there are three types of insurance that nearly all contractors will require:

 

1. Professional Indemnity

It goes without saying that you want to do a great job for your clients, for reasons of professional pride and repeat business, but sometimes errors or omissions can occur which can cause a relationship to go sour.

Being accused of professional negligence is just about every contractor’s worst nightmare, but when you have Professional Indemnity insurance, you don’t live in fear of an accusation by a client that your work has cost them money. It provides cover for legal defence costs and if damages are awarded against you.

 

2. Public Liability

If your line of work dictates that you have to work in someone else’s premises or out in the field, then you’ll need Public Liability insurance. It provides protection in the event of an accident while supplying services; for example, injuring a passer-by or breaking a valuable piece of equipment.

The protection will cover the cost of any potential lawsuits, replacements, legal fees, medical bills and compensation resulting from an accident. Failure to take out Public Liability can lead to you having to pay compensation out of your own pocket.

 

3. Employers’ Liability

If your company employs anyone other than yourself, you’ll need Employers’ Liability insurance. In fact, if you employ more than one employee, it’s a legal requirement to take out cover. Employers’ Liability insurance protects you against the cost of compensation as a result of employee injury or illness.

While a claim against you might be unlikely, especially if you have a close relationship with your employee(s), many agencies and clients will only consider your company if you’re sufficiently covered.

 

Where can you buy the right insurance?

The amount of cover required depends on your individual circumstances – the degree of risk can vary considerably depending on what it is that you offer and how it’s offered. But, it can be difficult to ascertain just how much cover you might need. Some insurers make contractors’ lives easier by offering packages that come with comprehensive cover as standard.

Specialist contractor insurance provider Kingsbridge combine Public Indemnity, Public Liability and Employers’ Liability cover into one single policy. This policy also comes with Occupational Personal Accident cover as standard, plus Directors’ and Officers’ Liability insurance.

 

To find out more about Kingbridge, click here.

 

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.

 

What you need to know about IR35

Familiarising yourself with numerous legislation is just one of the many tasks involved in setting up your own business. But for contractors, specifically, there’s a crucial piece of legislation to get to grips with: IR35.

 

What is IR35?

IR35 is a type of tax legislation put in place to prevent contractors from limiting their tax liabilities by supplying services through a Limited Company, despite carrying out the same work as the company’s employees. In short, it’s designed to stop false self-employment.

 

Does it affect all contractors?

HMRC defines ‘disguised employees’ as contractors who are treated and act like any other member of staff working for a company. IR35 law aims to stop disguised employees trading under an intermediary, which would entitle them to greater tax benefits.

It may seem simple on paper, but in actual fact, many contractors have found it difficult determining whether or not the legislation applies to them. Trading as a Limited Company and working ‘outside’ of IR35 can result in higher take-home pay than an Umbrella agreement, but you need to be certain about your position or you could face financial penalties.

Another thing to bear in mind is that the legislation applies to each individual contract. This means that you might be outside of IR35 for one contract, but within its scope for another. And that’s why it’s important to conduct thorough contract review processes, in order to clarify if any part of your work falls inside the legislation.

 

What penalties could I face?

Contractors found to have been ‘careless’ can be fined 30% of unpaid tax. This climbs to 70% of unpaid tax if the contractor was aware they were inside of the legislation but deliberately did not make the payment; and 100% of unpaid tax if they also tried to conceal their actions.

 

Whose responsibility is to determine IR35 status?

Big changes were introduced from April 2017, which saw the responsibility of determining IR35 status move from the contractor to the client. But this is only where the contract is with a public sector body. The government are currently also debating rolling it out to cover the Private Sector, although this is likely to take some time, if it happens at all.

Some evidence suggests that this has had a negative impact on the industry, causing firms to insist their contractors trade under an Umbrella agreement to relieve the burden of payroll and other administrative duties.

 

Pairing up with a professional

If you’re considering setting up as a contractor, the experts at Intouch Accounting can help you to navigate the minefield that is IR35. We’ll make sure you understand your rights and risks under IR35 and other laws, and will review your contracts for compliance. To find out more about our service, get in touch today.

 

 

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.

 

 

 

 

 

 

Dividends – how often should I take them, and when are they taxed?

Dividends can sometimes be difficult to understand and many contractors find themselves wondering when they should take them and when they actually get taxed? In this blog we answer these two questions and cover the timing and tax point of dividend declarations.

 

Question 1: When are dividends taxed? Is it when they’re paid, or the date they’re declared?

A dividend will be included on your tax return, according to the date the dividend was declared as becoming payable. The date it was paid is not relevant. For example:

A dividend declared 1 April 2018, that was ‘payable’ on 7 April 2018, is included as income for the 2018/19 tax year regardless of when it is actually paid.

Remember! Should HMRC decide to investigate, in order to support all dividends, you should keep copies of all dividend vouchers and minutes. Your contractor accountant should have a dividend template for you to use, then you can simply send them a copy every time you use it.

Tax planning opportunities

If you have some of your basic rate tax band left, have sufficient profits in your company and for whatever reason, you don’t want to pay yourself a dividend at that time, you’re able to declare a dividend immediately payable, if you intend to take the cash at a later date. This means you can fully utilise your tax allowances year on year, as it ensures the dividend falls into a specific tax year.

Don’t forget that as of 6 April 2018, the dividend allowance is £2,000. This applies for 2018/19. It’s worth taking at least £2,000 in dividends, as this amount is tax free, regardless of which tax band you fall into. Your contractor accountant will be able to review the level of dividend allowance available and amend this as necessary.

 

Question 2: How often should you pay yourself dividends? What are the dangers of monthly payments looking like disguised salary?

We generally recommend our clients to pay themselves dividends either monthly or quarterly. You can, however pay them whenever you wish.

As long as the correct dividend voucher and minutes paperwork are in place and your company has sufficient funds to cover the distributions, there’s little chance that HMRC will see your dividends as salary.

We do advise all clients to keep their salary and dividend payments completely separate from one another and pay all shareholders separately in the correct proportions, so that a clear audit trail can be provided. Should you be subject to an HMRC review, having clear audit trails in place can make all the difference, as every item is easy to trace and nothing has been missed or hidden.

If you’re looking for specialist, tailored advice regarding dividends that’s unique to you and your circumstances, speak to our team today to find out how Intouch can help you. Our Personal Accountants are here to be your guide, to ensure you get the best and most from contracting.

 


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.

Cessation of Contracting – what to do when it’s time to close your Limited Company

Cessation of Contracting

 

Whether you’re retiring, going back into permanent employment forever, or your circumstances change, there will potentially come a time when you will need to close your Limited Company.

 

But how do you go about it and what steps do you need to take? Director of Operations, Laura Hepworth takes you through the stages, to ensure you get the best outcome.

 

Extinct or just sleeping?

Whilst you may think that closing your company is the right option, it might be worth exploring whether you’re better off by putting your Limited Company in a dormant state.

 

In short, a dormant Limited Company is not trading, but is still required to prepare and file accounts with Companies House, submit a Corporation Tax Return and submit accounts.

 

If you are no longer contracting, but may return to contracting in the future or wish to keep your company name protected, then putting your company into a dormant state is the right step for you.

 

Company Liquidation

If you have decided that closing your company is the right choice for you, then you must first start off by asking yourself whether your Limited Company can settle its debts. If your company doesn’t have sufficient funds to pay your creditors in full, then it makes closing your company a much more involved process, which you’ll require professional assistance in doing so.

 

Closing your company

Assuming your company is able to meet its financial obligations, the process of actually closing the company is complex yet relatively straightforward.

 

Firstly, start by deciding on the date you wish to close the company. It’s important not to process any further transactions after this date, other than those required as part of the closure process.

 

HMRC will need to be notified of your decision to close your company as soon as you have decided on the date. We advise holding off from submitting your final accounts when you inform HMRC, as you may have some late-occurring expenses which will need to be accounted for. If VAT registered, you will need to cancel your registration. You’ll also need to pay any outstanding PAYE and/or National Insurance Contributions (NICs), run a final payroll to obtain P45s for yourself and any staff you employ and submit a P35 Employer Annual Return.

 

As soon as you know there are no further funds going in or out of your company, it’s time to close your business bank accounts and then prepare and submit your final accounts. The Corporation Tax due will be calculated by HMRC, which must be paid within nine months (although it’s recommended to do so as quickly as possible, as the company cannot be closed until all money owed has been paid). Once completed, any money remaining should be taken as a dividend.

 

Remember! Not to leave any funds are left in your company’s business bank account(s) as anything left can revert to the Crown.

 

What’s next?

Three months after your Limited Company has ceased trading, use the DS01 form from Companies House to dissolve your company. You will then enter a consultation phase with Companies House, where they publicise the proposal to strike off your company. This gives any interested parties the opportunity to challenge the process and should there be no objections or difficulties (or you change your mind!) your Limited Company will be struck off the Companies House register.

 

Final thoughts

Closing your Limited Company is a big step to take and one that you shouldn’t take alone. The first person you should discuss your plans with is your expert Personal Accountant, as they will be able to offer your tailored advice and support throughout the entire process.

 

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.

The Limited Company contractor’s guide to pensions

Pensions

As a Limited Company contractor you may pay into a pension in order to lower your overall tax liability, but are you aware of how the payment is made, who the contract is between and the implications this can have on how the tax relief is obtained? Is your pension being treated correctly?

 

Employer’s Pension Contribution

You should inform your pension provider in writing, that your pension contribution is in fact an Employer contribution and that it is being made gross. As the contract is between the Employer and your chosen pension company, payments should therefore be made direct from the Employer’s bank account (your Limited Company’s business bank account).

 

For example, a contribution of £800 will increase your pension pot by £800.

 

Employer’s contributions are deductible expenses for Corporation Tax purposes, meaning the company’s profits are reduced by the value of the contributions and the company pays less tax as a result.

 

Remember! Employer contributions are a deductible expense for IR35 deemed salary calculations, which can reduce the tax due by a large amount (which is great news!).

 

Your Personal Pension Contribution

If you personally pay into a pension, then none of it will go near your Limited Company. You’ll personally pay your pension provider a net amount and your provider will then claim 20% for tax from HMRC.

 

For example, a contribution of £800 will increase your pension pot by £1,000.

 

Personal contributions also increase your basic rate taxband, meaning you can earn more money before you cross over into higher tax rates. If you make a pension contribution of £800, your basic rate taxband will increase from £32,000 to £33,000, so you will pay a lower rate of tax on that portion of income.

 

However, if you’re not a higher rate taxpayer then this relief will be wasted. It could be more beneficial to make Employer contributions direct from your company, or increase your personal income to take full advantage of the relief. Speak to your Personal Accountant to understand which route is the most beneficial one to take for you and your circumstances. It’s a delicate balancing act when taking an additional dividend to pay into your pension, so make sure your contractor accountant completes the calculations on your behalf.

 

Are you paying net or gross, as an employer or an employee?

Your pension provider will be able to give you this information. If your payments are treated as net but are paid through your Limited Company, then you’re getting tax relief twice which will arouse suspicion from HMRC and could result in an unexpected tax bill.

 

Remember! The overall limit for your pension contributions is £40,000 (for tax years 2015-16 and 2016-17), which includes both payments made by you personally and by your employer.

 

Got questions about your pension? Speak to your dedicated Personal Accountant for tailored advice that’s unique to your needs as a Limited Company contractor.

 

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.

What is a dividend?

What is a dividend?

ˈdɪvɪdɛnd/

noun

1. a sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves).

 

Janna Beeching, Director of Accounting and Tax at Intouch Accounting helps Limited Company contractors every day. Here she shares some of the more commonly asked questions she’s asked about how much to take in dividends and when’s the right time…

 

What exactly is a dividend and how do Limited Company contractors benefit from them?

A dividend is a payment to the owners (shareholders) of the business, intended to be a return on the money invested (in share capital) by them.

 

Where a company makes a profit after corporation tax and has the available cash flow to meet all its liabilities as they become payable and meet its current needs then the company has distributable profits available to be paid as a dividend. The amount of a dividend that can be paid is cumulative. Therefore any historic profits not previously paid out are available alongside current year profits.

 

Directors have a duty to the company to ensure that it can meet its liabilities. There may be circumstances where profit is available but there is insufficient cash balances held to meet the dividend and pay taxes and other liabilities. This is where most care is required.

 

A dividend can only be paid to shareholders. Each shareholder is entitled to a proportion of total dividends according to the proportion of the shares they hold.

 

Dividends are not earnings for PAYE purposes and are not subject to income tax and National Insurance in the same way as salary. Dividends are subject to different tax rules, and it is these rules that provide the benefit of dividends over salary.

 

When can dividends be drawn from your company?

Before a contractor does anything they should determine their IR35 status. A contractor inside IR35 may not be able to pay dividends.

 

Technically, there are two types of dividends:

1. Interim dividends – are paid to individuals throughout the year and only require a decision by the directors. However they are capable of being overturned by the shareholders

2. Final dividends – are paid once the company’s annual accounts have been completed and determined by the shareholders, they cannot be overturned.

 

As a contractor’s Limited Company is traditionally made up of one person as both director and shareholders (or husband and wife) the distinction is less important. However, despite the less formality they should still conduct the declaration of dividends properly.

 

A dividend declaration is made by the directors passing a resolution. That resolution sets out the amount of the dividend and the date it is payable. If no date is given then it is payable on the date of the resolution.The payable date is the date that is used for determining the tax year in which the income is included.

 

It’s important to consider the payable date as this it could be beneficial in aiding your tax planning.

 

Paperwork

Dividend declarations must be agreed upon by the company’s directors and this is traditionally decided during a meeting and the passing of a resolution. If you’re the only director of your Limited Company you must still produce paperwork.

 

Dividend paperwork comprises of:

 

Resolution

This is a record of the formal decision taken by the director(s). It states the amount of the dividend and the date it is payable. The resolution is very important. HMRC will consider this evidence that the payment is indeed a dividend and not salary or a loan.

 

Dividend Voucher

Each shareholder has their own individual entitlement to a dividend declared. The voucher is a document that sets out that individual entitlement.

 

Illegal dividends

As stated by the The Companies House Act 2006, section 830, ‘a company may only make a distribution out of profits available for purpose’.

 

In short, this means that as long as your company has enough undistributed profits to date, after tax, and can meet all of its tax liabilities the dividend can legally be declared.

 

If a dividend is paid but the company cannot meet its tax liabilities it is considered illegal; and must be repaid by those that are aware, or should be aware, that it is illegal. For contractors, this would normally mean the directors and shareholders.

 

HMRC normally treat illegal dividends as loans to the directors/ shareholders and then tax them at a rate of 32.5%.

 

What are the benefits of dividends?

Dividends are beneficial in terms of how they are taxed and the ability to pay them to shareholders rather than employees.

 

What is the dividend tax rate?

From 6 April 2016 the rate at which dividends are taxed changed. The first £5,000 of dividends fall within the nil rate:

 

2015 ratesRates from 6 April 2016
Nil Rate0%0%
Falling within basic rate0%7.5%
Falling within higher rate25%32.5%
Remainder30.5%38.1%

 

Use our free dividend calculator to work out how much tax you’ll pay on your dividends this tax year.

 

Visit HMRC’s website if you need further information on the changes to dividends and how they might affect you.
Got questions about dividends? Our Personal Accountants provide expert, tailored advice to our clients on when they can take dividends and how much. Speak to our team today to find out more.

 

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.

Five reasons why your accounting spreadsheet is letting you down…

Is your accounting spreadsheet up to scratch?

There’s nothing more satisfying than when your complicated spreadsheet tallies up, especially when you’re using it for your accounts. But what happens when it doesn’t, or more worryingly, if you were to make a mistake that isn’t picked up for while?

 

In this blog, Janna Beeching, Director of Accounting and Tax shares the top five reasons how your accounting spreadsheet is letting you down and why you should consider online alternatives.

 

1.Can you spot the the mistake?

It’s so easy to throw a spreadsheet off track, yet incredibly hard to know when and where it occurred. By using spreadsheet programmes such as Microsoft Excel, you are putting 100% of your trust in both yours and its accuracy; but one simple formatting flop, an extra figure, or even a dicey decimal point can push your entire spreadsheet off course.

 

2. Caveman accountancy

Using a spreadsheet is truly going back to basics, as it cannot do much more than show your account’s core foundations. Savvy contractors need to be able to calculate their VAT, credit control, dividend allocation, payroll maintenance, to name but a few functions.

 

Unless you have a sound understanding of accounting and can work all this out yourself, then you’re going to be missing out on some key areas and potential opportunities for maximising your take home pay.

 

3. Pennies in – pounds out

Following on from point two, spreadsheets also can’t display your real-time cash flow or any outstanding payments. Cloud software will show you a generated overarching view of your finances and the income you can expect.

 

4. Fragile, immobile and at risk

HMRC can demand to see your accounts for the previous six years, so what do you do if your system fails you? Servers can crash, hard drives can break and viruses can corrupt your files – so why take the chance?

 

Having your accounts accessible in the Cloud means you can access them wherever and whenever you wish, plus they’re backed up, so there’s no need to worry about losing your data.

 

5. Spread the love

Sharing spreadsheets is a pain. You’ll have to be comfortable with emailing your accountant the latest version, then wait until they are done with it before you can edit it. Plus, there’s the added danger of them finding a mistake and then charging you for their time to rectify it.

 

Cloud accounts mean your accountant can have access at any point and have a real-time snapshot of what’s going on. No sharing, no saving multiple versions and no danger of mistakes.

 

What can Intouch Accounting do?

So after reading these points, ask yourself if it’s worth your time, effort and possibly the costly repercussions from using your own spreadsheets. Why not explore what specialist, online software that’s designed for contractors can do for you?

 

With Intouch Accounting’s portal, our expert Personal Accountants are able to access your accounts whenever and provide you with specialist advice and guidance. Request your free portal demo today and see for yourself how it can work for you. Or spend 99 seconds watching our video to show how our portal will make your life easier.

 

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.

What’s in store for Umbrella contractors after April 2016?

Change is on the horizon for Umbrella contractors

Whilst the 2015 draft Finance Bill and Autumn Statement indicated less change is immediately on the cards for Limited Company contractors compared to their Umbrella contractor colleagues, there are still certain aspects planned for 2016 that all contractors need to be aware of.

 

What are these changes and how will they affect you?

IR35

Whilst no major changes were presented in the Autumn Statement, it’s likely that further announcements to IR35 will be made, post April. It was, however, announced that if you’re truly operating outside of IR35, then you are still able to claim for travel and subsistence (T&S), which is a major bonus for contractors that rely heavily on their T&S claims to increase their overall tax relief (after considering the 24 month rule).

 

Supervision, direction or control (SDC)

SDC will not apply to Limited Company contractors, if their contract is not caught inside IR35. So as a Limited Company contractor, as long as you ensure your contracts have undergone an IR35 risk assessment, you can rest easy knowing that SDC will not apply to you. With Intouch, you can have your contracts assessed as part of your all inclusive monthly service.

 

If your accountant doesn’t offer unlimited, free contract risk assessments, then it’s time to switch. With HMRC likely to once again sharpen their focus on IR35, it’s wise to be certain about the status of your contract.

 

The new SDC ‘test’ and the effects on Umbrella workers

April 6 will mark a significant change for Umbrella workers, as they will no longer be able to claim tax relief for their T&S expenses, if subject to SDC. It will be up to the Umbrella worker’s enlisted Umbrella service provider and end client to determine their SDC status, meaning that the Umbrella worker will not see a penny of their expenses until their status has been decided.

 

If you do pass the SDC test, you’ll then only be able to claim tax relief on your expenses via a Self Assessment Tax Return. You will have to pay your tax through PAYE throughout the year, then claim it back at the end of the tax year.

 

Whilst the finer details of SDC are yet to be announced, it’s clear that Umbrella workers are under the spotlight (with some industries more so than others), so make sure you keep an eye out for any further announcements that are to be made surrounding SDC.

 

Are you an Umbrella worker worried by SDC?

HMRC have provided some contractor scenarios to give you an indication on how certain careers may be affected. Whilst these scenarios can give you a good understanding of SDC, you should discuss it further with your Umbrella company to understand how they will support you during this time of change.

 

The Salary Sacrifice Test

If you’re an Umbrella worker that currently receives expense claims as part of your weekly / monthly payroll, then you’re going to notice a major difference come April 6. HMRC now view any form of expense payments within your salary as a salary sacrifice payment and are putting a stop to it.

 

This means many Umbrella companies will change their approach to how expense claims are paid to their contractors and, as explained previously, Umbrella workers can only claim expenses once a year through the use of a Self Assessment Tax Return.

 

What a load of kerfuffle for serious contractors still using an Umbrella company!

If you’re a serious contractor that relies on the tax relief from your expenses and you see contracting as a long term option, it make sense to check and be sure that working under an Umbrella is still right for you.

It’s clear that Limited Company contractors have mostly been left untouched (for the foreseeable future) to get on with what they do best, so why not join them and continue to enjoy the benefits from contracting that you rely on the most?

Join the contracting revolution with an accountancy that champions Britain’s contractors! Things are changing, don’t be left behind…

 

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.

Feeling unloved? It’s time to switch accountant

It’s time to switch accountants

Like strawberries and cream, gin and tonic or Batman and Robin, your contractor accountant should be your perfect other half, steering you on the path to contracting success. It’s their responsibility to keep you compliant, feeling assured and taking home as much of your hard earned contractor pay as possible.

 

But what happens when the relationship turns sour and you no longer get the support or service you need and deserve? If you resonate with any of the following examples, then it might be time to look elsewhere:

 

switch accountant

 

Don’t settle for second best, have the accounting relationship you deserve

If you’ve made the decision to switch accountants, then changing over to Intouch really couldn’t be easier.

 no switcher fees

With no switcher fees* for joining us, or charges for leaving, there really is nothing stopping you from discovering the perfect contractor accountancy relationship.

 

Call us, we’d love to speak to you

Why not discuss your current circumstances with one of our expert advisers? Switching is so easy to do and we’ll even speak to your current accountant for you, so you won’t have to worry about any uncomfortable conversations. There really is nothing for you to lose…but lots to gain!

 

Keep on loving what you love

Love contracting, love your professional freedom, love your take home pay. Whatever it is that you love about contracting, make sure you have the perfect relationship with your contractor accountant to help you achieve contracting success.

 

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.

Five reasons to be your own boss in 2016

Be your own boss in 2016

With the recent announcements in this year’s Autumn Statement (or lack of them!), the future of contracting is appearing to be more attractive than ever.

 

So why should you consider contracting in 2016? Here we explore the professional and personal benefits you can gain by contracting with our top five reasons to contract in 2016 and beyond:

 

Career progression

career progression

If you’re in permanent employment there will often be a limit to the level of progression you can achieve. But as the boss of your own Limited Company the climb up the ladder of success is endless, as you control your own destiny.

Fancy branching out into a new field of expertise? Or are you seeing a trend for a specific type of contract within your field of profession? Your professional development and career progression is completely up to you, so why not go for it! Whilst the sky’s the limit, you’ll have to be driven enough to build up your network, promote yourself and have the determination to succeed.

 

 

Tailoring your skills

skills

Whilst contracting allows you the freedom to design your working life to your requirements, it also means that it’s completely up to you to do so! From scouting for contracts, creating and managing your business website to networking and managing your time, you’ll never stop learning. Permanent employment means you move to the beat of someone else’s drum, but as a Limited Company contractor you’ll need to find your own rhythm.

But don’t let being Limited limit you! There are so many tools out there to help you hone your skills and time management, without distracting you from your contract at hand.

 

Flexibility

Page_4_iStock_000009697091Large

Tailoring your work life around your personal life (and not the other way around) is one of the major benefits of contracting. You make the rules, so if you only want to work certain hours or days to fit around your family life or favourite hobby, then you can!

 

It’s also completely up to you what time you feel you can give to certain contracts and when work is suitable for you. Fancy a break in the summer, or don’t want to work on your birthday? Choosing your contracts means you can decide when you work and for how long!

 

Remember! Being flexible in the early days of contracting means that you’ll build up your network and client list far quicker, allowing you to be more selective once you’ve established yourself. If previous clients know your calibre of work but are aware of an impending holiday, they’ll be more likely to hold off hiring anyone else until you’re back, especially if you’ve worked for them before and they’re keen to have you back.

 

Financial independence

Hand and money staircase isolated on white

Imagine a job where you can charge what you like for the work you do. Within reason, you can charge clients hourly or daily rates that just aren’t possible in permanent employment.

 

But whilst financial independence is probably one of the most popular goals for any professional worker, it’s worth bearing in mind that you’ll need support to ensure you get the most from your take home pay. This is where enlisting the services of a professional contractor accountant comes in, as they will be able to make sure you are taking advantage of all the taxable benefits available to you whilst maximising your take home pay.

 

New challenges

page_3_iStock_000033300086_Large

You’ll face new challenges; from learning new skills and working patterns, to winning business and learning how to deal with gaps in contracts, every contract will teach you something new about the world of contracting.

 

But whilst there will be a few obstacles to overcome, the financial, professional and personal achievements from going Limited far outweigh those offered in permanent employment.

 

How Intouch Accounting can help

Whether you’re just starting out and wondering what contracting can offer you, or are a seasoned pro but feel you need more from your current accounting solution, Intouch can help you at every step of the way. From incorporating your Limited Company free of charge and explaining how it all works, to making sure you’re supported when it comes to key deadlines such as your Self Assessment Tax Return, your Personal Accountant is here to provide guidance and support, whenever you need it.

 

To find out more about the services Intouch provide, why not visit us, email us, or better still,  speak to one of our advisers on 01202 375 562.

 

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.