If you are new to contracting, our series of guides will help you decide how to set up your business and take full advantage of opportunities to minimise your tax and national insurance, providing you with more take home pay.
Our guide to starting out in the world of contracting provides you with a step by step approach to what you will need to consider when moving from permanent to contracting.
We look at the benefits of contracting in terms of both quality of life and take home pay, your options for how to get paid – comparing limited company vs umbrella company vs sole trader.
Should you choose this route, there is a specific process you need to follow in order to set up a limited company, what you need to consider when looking for a contractor accountant, and your potential obligations as a Limited Company Director.
Operating through a Limited Company as a contractor or freelancer is usually the most effective method of maximising your take home pay. In our Contractor Guide to Salaries & Dividends, we look at how to do this via a combination of taking a directors salary and dividends from your business.
We provide guidance on planning for the future and how paying into a contractor pension can help offset the amount of tax you pay, while alternatively, tax savings can also be made by employing your partner or spouse in your limited company. A high percentage of contractors are also likely to have children, we also look at how you can pay into a childcare voucher scheme when running your own business.
If you’re business turns out to be successful, you may need to figure out what to do with cash surpluses in your business account. However, should the unthinkable arise and you find yourself without a contract, we can help with potential benefits claims you may have to make, and the impact this could have on your company.
We review your options on what business expenses you are able to claim for in our Guide to Contractor Expenses.
Running your own limited company provides you with a wider variety of valid expenses you can claim for as part of running your own limited company. Always check with your contractor accountant should you have any queries about what you can claim.
In our Contractor Guide to Tax, we talk you through the different types of taxes you will be obliged to pay as a Limited Company Director.
IR35 is a hot topic in contracting circles following it’s introduction in April 2000. Find out what is it, and the potential impact of IR35 on a contractor or freelancer operating through your own Limited Company. We also have assistance on how to make an IR35 declaration.
As a contractor running a limited company, there’s a wide variety of topics you may have to consider in order to make your new business a success.
Firstly consider how to find work as a contractor, and when you’ve managed to get work, how do you deal with creating contracts for your new client and resolve any disputes which could arise as a result of the work you conduct.
This might also be the first time you’ve had to work with a budget, and deal with invoicing your clients. Don’t forget to plan your time outside of work – particularly if you’re keen to take a break from work.
If you want more information on our services and how we can help you start out in contracting, please call us on 0808 168 0422 or chat live to one of our client accountants. To discover how easy it is to use our online accounting service, start a 14 day trial.