How to set up a new company

While setting up a Limited Company tends to involve more costs and admin than operating as a Sole Trader or under an Umbrella agreement, it also offers a wealth of benefits. Among them are greater tax efficiency, less personal liability and more control over your contracting business and personal finances.

If you’re certain that your skills are in demand and are confident that you can charge your desired day rate for your services, here’s what you need to do to set up your new business:

 

Choose a company name

Here’s the fun part – what do you want to call your company? This is completely down to personal preference; would you rather an abstract name, or an informative one that lets prospects know exactly what you do? Our top tips would be to research online for inspiration, brainstorm ideas and test a few of your favourites on friends and family. Before you get your heart set on anything, check with Companies House that your preferred name is available.

 

Incorporate your company

If you’re going it alone, you’ll be responsible for ‘incorporating’ your company, which essentially means registering with Companies House. Along with your company’s name and address, you’ll need:

  • Details of the appointed directors, who’ll control the business (this is likely to be you but may also include a partner/spouse).
  • Details of the company’s shares – for instance, you may have decided on shared ownership with a partner/spouse. If so, they’ll need to agree to forming the company and the written rules, called the ‘memorandum and articles of association.’
  • To check what your SIC code is, which identifies the nature of your business.
  • To establish a company bank account, register for VAT and set up a payroll scheme.

 

Pulling together all the required information can be slightly daunting; also, how you set up your company can affect how tax efficient you are further down the line. This is why you should consider seeking advice from a professional at Intouch, who will also help to ensure that you’re clued up about IR35 tax legislation. Do this and you’ll also have much more time available to channel into the next, important task…

 

Getting your name out there

With your company created, it’s time to shout about it from the rooftops and get your name out there. Take time to research different marketing and promotional tactics; how are you going to show prospects what you have to offer and encourage them to choose YOU to satisfy their next contract?

 

At Intouch Accounting our Personal Accountants get your new company all set up for free, and work with you to help you make the right business decisions and work in the most tax efficient way. We know that taking the first steps into contracting is a big decision, so we’re happy to chat through your questions even if you’re not ready to get going just yet. Get in touch with one of our expert team members today to find out more.

 

Related reads:

Venturing into contracting? Download our free guide now

Calculate your take-home pay and find out if Limited is right for you

Contractor Accountants – do you get what you pay for?

 

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 pros and cons of a Limited Company for a contractor

After much deliberation, you’ve decided to go it alone and set up as a contractor. You’ve polished your CV and LinkedIn profile and have started looking for your first contract, but you’re yet to decide on one important factor: your new company’s trading structure.

As a contractor, you can either choose to set up as a Limited Company, a Sole Trader or work under a so-called ‘Umbrella’ agreement. This article examines the main pros and cons of operating as a Limited Company.

Pros: 

Tax-efficient

Registering as a Limited Company tends to be the most tax-efficient way of operating, particularly if your annual income is likely to exceed £40,000. As a director and shareholder in the business, you can opt to take your income in the form of dividends, which will reduce National Insurance costs.

Claimable expenses

Further savings can be made through claiming back certain business expenses, such as home office costs, childcare and mileage.

More control

As the director, you make the decisions and have full control over how your business is run, as well as your personal income and therefore rates of tax. This means no compromising with partners, or relying on third parties to collect payment for your services.

Limited personal liability

With a Limited Company, your personal finances are separate from business assets. So, if something were to go wrong, you’d only lose money from the company.

More professional image

Trading as a Limited Company gives off a more professional image, which can help you to attract and retain clients, particularly larger ones.

 

Cons:

More administration

As director, you have to ensure that your business is compliant with company law and are required to do everything from filing accounts to preparing tax returns and general bookkeeping. It’s down to you to familiarise yourself with the punitive IR35 legislation, too.

Greater responsibility

Acting as director does carry considerable responsibility. Not only will you have to conduct admin tasks on a regular basis, but it’s your duty to ensure that all information is accurate and submitted on time.

Associated costs

There are several costs related to setting up and running a Limited Company, namely those related to administration, filing and accountancy.

 

At Intouch Accounting, our Personal Accountants offer expert advice on the most suitable trading structure for your future business. We’ll manage the company formation on your behalf and relieve you of those time-consuming and often complex administrative duties. As experts in IR35, we’ll tell you everything you need to know about the legislation. Get in touch today to find out more.

 

You may also be interested in:

Venturing into contracting? Download our free guide now

Calculate your take-home pay and find out if Limited is right for you

Contractor Accountants – do you get what you pay for?

 

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.

 

 

Start contracting with confidence in 2018

Starting a long-term career as a contractor or freelancer in 2018 has become more attractive than during any time in the last two years. If you’re looking for independence and have a skill set that matches increasing current demand, then it’s possible to both ‘have your cake and eat it’, in 2018!

 

Clarity of employment status

The turmoil that was predicted from the middle of 2017 regarding changes to IR35 (the legislation that determines your employment status and therefore your potential tax efficiency as a contractor) has not materialised. The possibility of further IR35 change in the private sector has been deferred until the public sector changes can be reviewed and lessons learned.

Meanwhile, day rates are also stabilising as employers who sought to pass the burden of employer’s National Insurance contributions entirely onto workers are experiencing resistance.

HMRC’s employment status tool (CEST: ‘Check Employment Status for Tax’) also helps; it’s not perfect, and it’s still advisable to take professional IR35 advice, but when answered openly the questions provide a pretty accurate answer.

This increased level of clarity puts the contractor in the perfect position to grasp the opportunity, and begin to enjoy the freedoms of freelancing – all good reasons to rejoice in 2018!

 

Demand for skills 

Brexit and other Government promises to deliver on infrastructure projects and technology change, are creating huge demand for IT and related skills across the UK.

Employers are still preferring to keep employment costs under their control by engaging flexible workers, under flexible or zero-hour contracts. And anti-avoidance rules are also settling down with engagers being more pragmatic and accommodating (rather than issuing blanket edicts) in order to attract and retain talent.

All good news for the 2018 contractor.

 

Taking the leap into Limited

Are you ready to have your cake and eat it? Embrace the quality of life, freedom and flexibility of being your own boss, as well as increased take home pay?

If so, there are always choices of which trading model you should trade under. As a rule of thumb (only – there are always exceptions), you should consider the following:

Semi or low-skilled workers – If you are semi or low-skilled or provided services at or near the National Minimum Wage, then using a Limited Company is not likely to be the most suitable vehicle for a number of reasons. If you’re in this category and being put under pressure to go limited, you should take independent advice.

If you’re able to choose your preferred solution, then an Umbrella organisation should give you good advice. Beware the shady Umbrellas (pun intended) though – FCSA accreditation is a must. For others with perhaps fewer expenses that can be claimed, the best solution may well be to use a simple payroll bureau, where the fees you pay are lower and the rights you get more comprehensive.

 

Skilled or ‘Knowledge Workers’ – If you’re a ‘Knowledge Worker’ or skilled in a particular trade or profession, then a Limited Company can provide you with the best solution from several perspectives. For individuals who are independent and outside of the supervision, direction or control of the hirer, there will be advantages in your take home pay. You’ll have increased flexibility and commercial credibility, but you’ll have to protect yourself for illness or inability to work (usually through insurances). Ask for assistance from a contractor accounting professional from the beginning and get off to a good start.

 

Contracting advice from experts

If you’re thinking of setting up as a Limited Company contractor, Intouch can offer more than just an accounting service. From set-up and insurance to tax and IR35 advice, your Personal Accountant will be there to help you start your journey with confidence. We know that taking your first step into contracting is a big decision so we’re happy to chat through any questions you have even if you’re not ready to get going just yet.

 

You may also be interested in:

Venturing into contracting? Download our free guide

IR35 FAQs

Intouch current joining offers

 

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.

 

When passion turns to profit – 5 reasons to become a Limited Company contractor

When passion turns to profit

Becoming a Limited Company contractor may seem like a big step but, when taken properly, it’s a savvy move that could see a quantum leap in your business (and your bottom line).

 

When you’re pursuing your passion as a contractor, operating under an Umbrella company looks like an attractive option – with its minimal paperwork and administration. Happy days.

 

But if you want to turn your passion into more pounds in your pocket, you may want to consider contracting through your own Limited Company. You’ll not only reduce your tax burden, but your business will become more of a magnet for prospective clients.

 

What are the advantages of contracting via a Limited Company?

There are scores of reasons for “going Limited” and trading through your own Limited Company, especially if you earn £30,000 a year or more and plan on contracting for at least three to six months. We walk you through five of the main incentives.

 

1. Tax and National Insurance Contributions (NICs)

You’ll be hard pushed to find someone – anyone – who doesn’t want to pay less tax.

As a Limited Company director, the bulk of your income is made up of dividends, which are subject to a different tax than a regular salary. Plus, National Insurance Contributions (NICs) aren’t payable on dividends. All of this means more money in your pocket at the end of the month.

Last year’s Summer Budget may have increased dividend taxation after the first £5,000 but this shouldn’t deter would-be contractors opting for the Limited Company option. After all, at the top end, you can still take home significantly more of your contract value compared to when you operate through an Umbrella company.

Why not use our take home pay calculator to see how much you can expect to take through your Limited Company versus an Umbrella?

 

2. Expenses

The more allowable business expenses you claim, the less you’ll owe the taxman.

Given that business expenses are deducted from Limited Company profits (and you only incur tax on profits), if your profits are reduced, your tax bill will be too.

As a Limited Company contractor, the range of expenses you can claim tax relief on is far broader than when you work under an Umbrella company.

 

3. VAT Flat Rate scheme

If your Limited Company taxable turnover is £150,000 or less (excluding VAT), you’re eligible to join the Flat Rate Scheme (FRS), which means you:

  • pay a fixed rate of VAT
  • keep the difference between the amount you charge your clients and pay to HMRC

 

Money-saving benefits aside, the FRS simplifies your record keeping and VAT calculations (never a bad thing). By contrast, if you choose to go down the Umbrella route, you won’t be able to take advantage of the FRS at all.

 

4. Liability

As a director of a Limited Company, you’re protected by having limited liability.

So, even if the worst happens and your business goes down the pan, you’ll only be personally responsible for your company’s debts to the extent of any shares you paid for and unsecured loans made to the company.

This is because your Limited Company has a separate legal personality. In other words, your clients enter into contracts with your Limited Company as an entity, not you as its director.

 

5. Client confidence

Appearances count for a lot in business and having a Limited Company structure can instil confidence in clients and potential clients, some of whom equate ‘Ltd’ with professionalism.

Many businesses won’t even take you on for a contract if you don’t have a registered Limited Company.

 

When is the best time to become a Limited Company contractor?

Conventional wisdom says that, while your earnings are fairly modest, it’s best to stay on the Umbrella pathway because your tax and accounting responsibilities are fairly basic. You can comfortably do a DIY job on your Self Assessment (and save yourself accountancy fees).

In reality, working as a Limited Company contractor isn’t just about saving money. It’s about keeping the financial health of your business and personal lives separate. There’s no better time to do this than now.

 

How do you start working as a Limited Company contractor?

Before cracking on as a Limited Company contractor, you’ll need to register your company with Companies House.

You have three choices:

1. Do it yourself online

2. Ask an accountant to do it on your behalf

3. Use a company formation agent

 

The Companies House website sets out the registration requirements, registration fee, restrictions on company names and so on. Or speak to us and we’ll do it for FREE in 24 hours. You can also read our guide to contracting and our blog on how to set up a Limited Company.

 

If you’re currently working under an Umbrella company and considering making the move to becoming a Limited Company contractor, talk to our experts today about what you need to know and how to get started.

 

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.

How to set up your Limited Company

How to set up your Limited Company

If you’re ready for a change in the way you work, today is a good day to get started. Maybe you’ve been in permanent employment all your life and want to get more for your skills; or perhaps you’re already contracting but aren’t getting the most through your current arrangement via an Umbrella or agent. Or are you a student approaching graduation and prefer the idea of being your own boss instead of getting stuck into the 9-5 daily grind?

 

Why bother?

As a contractor you can:

  • keep more of your earnings
  • be your own boss
  • control how, when and where you work
  • decide who you work for and how

 

There are already 4.7 million self-employed workers in the UK right now. Everyone will have different motivations for going into contracting and for those looking on with envy, quite often the only thing stopping them is…themselves.

Do some research into the level of demand for your skills and the day rate you can command and you may find the confidence you need to take the plunge.

 

It’s not what you make, it’s what you take

If you expect to earn at least £30,000 per annum and to be contracting for more than three months, working through your own Limited Company will mean you can enjoy more freedoms and maximise your take home pay. Our Ready, set, go…into contracting guide gives you more insight into what being a contractor entails.

 

The first step to setting up a Limited Company…

Know what you’re getting yourself into and understand the responsibilities you’ll have with your own Limited Company. But don’t be alarmed, just make sure you get to grips with what’s what.

We work with contractors every day, helping them run their Limited Company in the best way depending on their individual circumstances. We know exactly how to set up your Limited Company. We can help you incorporate your company within 24 hours and register you for VAT and PAYE. To fully appreciate your responsibilities as a Director, you can have a chat with our experts. You are ultimately responsible for your company throughout the year but we’ll help guide you through everything that needs doing.

 

Get yourself out there

With the freedom to work where you want, you are the master of your destiny so you need to be active in finding your next contract. Decide on a suitable company name and give yourself a visual identity that you are proud of. Check out our 10 tips to promoting brand: You, including tips for networking, and make sure you harness the power of social media, whether it’s a whole new world or you’re looking to get more out of it.

 

What else?

There’s lots to get your head around when you’re first setting up your company and working with a specialist contractor accountant from day one can help ensure you don’t miss anything. With Intouch, not only will you get help with everything you need to run your company throughout the year, we also have relationships in place so you can sort out your business insurance and banking without any fuss.

Whatever your motivation, there are so many great reasons to set up your Limited Company. Make the right choice for you.

 

Speak to our experts today about how to get started and they can set your Limited Company up for you within 24 hours…for FREE!

The day the UK decided to break away

Brexit becomes reality

June 24th 2016 – an historic day for the United Kingdom as the voting population opted to leave the European Union in favour of national independence. Unsurprisingly, today everyone wants to know what leaving the EU really means and how it will affect them. Well, it seems no one could get hold of a crystal ball to see what’s around the corner so in the immediate term, we simply don’t know what’s to come or when it will come. It is certain that anything that is going to happen will be slow. Our pre-voting day blog considered issues that contractors will be most interested in and for now we can offer no more direction on how this monumental outcome will specifically impact contractors.

 

The process of leaving will be no mean feat. With the UK now facing many years of negotiations, we have to employ a ‘wait and see’ policy while talks are held, old deals are undone and new ones struck. This uncertainty could benefit contractors as companies wishing to employ a cautious approach to boosting their business may favour hiring temporary resources with specialist skills that can be brought in and out more easily than permanent employees. Donald Tusk, EU Council President, has been quick to reassure the UK that during its two year withdrawal period from the EU we won’t lose our rights and must still honour our responsibilities.

 

This morning Bank of England Governor Mark Carney warned us all to expect “some market and economic volatility”. Indeed the exit announcement triggered the biggest one-day fall in the Pound (10%) since 1985 and the Sterling has been bouncing up and down in the past 24 hours and is likely to yo yo more over the next few days. This was always going to be the case with such a fundamental shift in world economics. And the Prime Minister’s resignation was always going to be next on the cards if Brexit became a reality. But Carney has also unveiled the bank’s ‘Plan B’ which involves £250bn to see the economy through this inevitable period of uncertainty. He attempted to reassure the public and media that Britain’s banks are robust and have been subject to rigorous stress tests to deal with huge volatility.  It seems par for the course that we’ll need to see another recession through. We have recently come out of one and are familiar with employing austerity measures to build a stronger economy.

 

Whether you wanted in or out, it’s important that we respect each other’s views and now work together to build a stronger Britain. Yesterday’s vote saw the highest turnout since the 1992 General Election: 72% of those eligible to vote turned out to the polls, with 52% opting for Brexit. So in the immediate term these people at least will be supporting our outgoing and new Prime Ministers to build a more independent nation. Of course, Cameron’s successor will hope that as things become clearer there will be a better feeling about the UK’s life outside of the EU. Given that 48% wanted to remain, their voice will still be heard and negotiations are unlikely to be radical. They will be done by serious people looking for sensible outcomes.

 

European Commission President Jean-Claude Juncker suggested earlier this month that a deserter would not be welcomed with open arms. The UK still holds a strong position and has a significant contribution to make on the world’s stage so the reality is unlikely to be as devastating as first feared. Norway and Switzerland have strong trade agreements in place, despite not being an EU member so there’s no reason why Britain can’t achieve the same. Other economic powers will want stability as much as our own Government so it seems a reasonable bet that they will want to sit round the table and work out ways to keep stability as much as possible…and they’ll want to do it soon. After all, this is a worrying time for those countries remaining in the EU as a key player has left the game. Although he feels he’s “not the right captain to steer the country to its destination” Cameron has vowed to stay on and help steady the ship until his replacement takes over in October.

 

A quick glance at how votes were divided across the nation raises the question of just how united the UK will remain. Scotland and Northern Ireland voted to remain and Nicola Sturgeon has already suggested a new Scottish Referendum is highly likely. But there’s also the strong likelihood of other EU countries now reassessing their membership, so perhaps we should be asking ‘who’s next?’ France? Italy? The Netherlands? That opens up a wider debate about what might happen if the EU as we know it (at least up until 4:00am this morning) breaks up altogether. That’s a discussion for another day…

 

For now, no one knows how long this rollercoaster will last and how many twists and turns it will have. The UK’s contractors need to continue to deliver business as usual and apply their valuable skills to bolster our economy. This is a once in a lifetime opportunity for us all to take control and help shape the future.
As Britain’s Contractor Champion Intouch will be there voicing the concerns and ideas of the UK’s independent workforce. We will continue to advise our customers on the best way to run their Limited Company based on their individual circumstances and will be keeping a keen eye on developments to ensure you receive the contractor-centric interpretation. Make sure you’re with us for now and the future.

 

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.

Redundancy can pave the way to more money, freedom and choice. How? We’ll tell you…

Redundancy is not the end!

Have you been made redundant or is redundancy on the cards? It’s not a disaster; in fact it could be just the incentive you need to unlock your hidden potential and achieve more than you thought possible, through a new beginning in contracting…

 

Advantages of contracting include:

 

  • Higher take home pay – even if they actually work less hours than before, contractors can still earn around 2.5 times the earnings of permanent employees.

 

  • Greater career choice and flexibility – You decide which contracts to take, when and for how long so you can have as much or as little variety in your career as you wish. There has been an increase of 7.7% year-on-year in available contract jobs, so you should have plenty of choice.

 

Remember! Contracting isn’t an easy option but it should make you stronger and more confident in controlling your own career. If you’re willing to put in the groundwork and time, contracting can reward you as much as the effort you put in.

 

  • Design your life around work, not the other way around  Once you discover you can earn the same amount working for fewer hours, you can decide whether to use the extra hours to earn more or to take advantage of time for family, hobbies, travel, volunteering, studying or pursuing other passions.

 

  • Work wherever you like  Few things are more soul destroying than a two-hour commute each day. Many contractors work from home. Imagine the bliss of getting up and having a one minute commute! You can even work in the garden, park or coffee shop, wherever suits you best.

 

  • Be your own boss  When you decide to go contracting, your professional development and career progression are completely up to you and you control your own destiny.

 

Read our blog “Five Reasons to be Your Own Boss in 2016” to see why now is the perfect time to start contracting.

 

  • Control when you work, for whom and for how long  If you only want to work certain hours or days, then you can! You could arrange your contracts so you’re free in term time or all summer, whatever suits you.

 

It’s also up to you how much time you can give to each contract and whether the work is suitable for you. If it doesn’t interest you, there’s always the option of turning it down!

 

This freedom empowers you to use your skills and experience on your terms to further your career aspirations and goals.

 

If you’re interested in contracting, why not speak to people who are already contracting and ask their opinions and advice? There’s lots of support for contractors via online business communities and support groups. Similarly, a good contractor accountant will take away any financial worries.

 

Who wouldn’t want to wake up every workday full of energy and passion, knowing that you can go as far and as fast as your own efforts will take you?

 

If you are facing any stage of redundancy, we hope that by bringing them to your attention, we have given you insight into some of the advantages to be gained through 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.

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.

Everything’s about to change for Umbrella workers – make sure you’re prepared

Calling all Umbrella workers

Are you currently contracting under an Umbrella? Have you considered how the changes coming in April will affect you?

 

Read on to know what’s coming, what you’ll be losing and what you can do to make the right choice for you.

 

Announcements made in the 2015 Budgets, the Autumn Statement and the draft Finance Bill shook the UK’s 200,000 Umbrella workers, as the feared changes were confirmed. Fundamentally, Umbrella workers’ take home pay is under threat from increased taxation. Come April 2016 strict new rules are to be imposed. How will they affect you?

 

Your professional life will change

In April this year:

  • Your tax relief on travel and subsistence expenses will be restricted, where you are subject to supervision, direction or control (SDC)
  • You’ll automatically be deemed as subject to SDC by HMRC and your Umbrella must determine otherwise with the help of the client
  • Greater compliance checks will be enforced
  • Other expenses you claim will be taxed under PAYE
  • By law you will have to submit a Self-Assessment Tax Return to obtain tax relief on other expenses
  • Umbrella charges may increase to pay for the additional compliance

 

So what are your options?

  • Be moved over into a Limited Company by your current Umbrella provider if (or when) they offer this service
  • Run the risk of other untested models designed to avoid the changes
  • Set up your own Limited Company
  • Return to permanent employment
  • Stay with your Umbrella and see if the model still works for you.

 

Many contractors work under an Umbrella because their services complement their professional requirements. But this is all about to change.

 

Umbrellas in their current form will need to implement major changes to the way they operate in preparation for April’s changes. What they will look like is as yet unknown, meaning they’ll be untested and unproven.

 

If contracting is a long term career choice, then it’s worth revisiting your options.

 

Tempted to go Limited?

If your current Umbrella provider is offering you their Limited Company services, it may be tempting (and seem easier) to stick with them. But you could end up paying more for a service that doesn’t meet your requirements. It’s worth checking out what specialist contractor accountants offer to make sure you’re getting the service you need to run your company smoothly and help you stay compliant.

 

We’ve compiled the essential checklist of what every Umbrella-to-Limited contractor should expect from their prospective service provider:

checklist

 

To help with your research why not download our essential checklist? You can do so by clicking on this link:  The essential checklist (181 downloads)

 

Final thoughts

Change is imminent, but it’s how you prepare yourself now that will put you in the best stead for April. Whatever decision you make, always ensure it’s the best one for you, both personally and professionally. Don’t be persuaded by your existing provider that their solution is your only choice.

Before you get caught up in your research, why not make use of our free take home pay calculator to give yourself an idea of how much you could be taking home 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.

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.