First time contracting? Relax - you're in safe hands.
Embarking on your first contract can be a time consuming and daunting experience. In addition you need to be sure you fully understand the options that are available and how contracting will affect your day to day finances. plan.it Services is a firm of Chartered Accountants specialising in providing accountancy and tax services to IT contractors, contract engineers, supply teachers, locum and healthcare professionals and many other contract and temporary workers.
We know how confusing it can all seem - just when you need to be concentrating on the job in hand. Well, don't worry, we're here to help and guide you every step of the way. We'll help you plan and administer your new venture in a professional, friendly and cost effective and tax efficient way. Working closely with our clients is our priority; this will ensure you operate in a way which best suits you.
Limited Companies? Umbrellas? We can help
Choices, choices. And so many different bits of advice. The fact is, there are a few options you need to look at as a contractor to make sure you're paying the right tax and getting the maximum net income.
Have a look at the choices you've got:
IR35 and other tax regulations have reduced the tax advantages but, where a contractor is genuinely in business on their own account, operating through a limited company remains extremely popular. Please see our limited company section for more details of this service.
For contractors who are either not in business on their own account or do not want the responsibility or running their own limited company the umbrella company is the perfect solution.
Please see our umbrella company section for more details of this service.
"Self employment" is where a person is genuinely in business on their own account and not working through any form of limited company or other type of incorporated entity.
Whilst this way of working is beneficial to the contractor it is not accepted by HM Revenue and Customs (HMRC) as applicable to recruitment agencies and is therefore effectively unavailable to most contractors.
Most recruitment agencies do not want to administer their own payroll, or deal with potential employment issues, and so simply do not run a payroll service. If they do, the contractor pays full tax and employees national insurance (NI) contributions on all earnings. No business expenses, which would help to reduce tax and NI liabilities, can be claimed. Hence, although the most straight forward option this will invariably give the contractor the least take home pay.
So which one's right for you? Call one of advisers on 020 7251 8690 to discuss the right option for you. Out of hours, complete our no obligation enquiry form or download our free guide to ‘Maximising Income as a Contractor' which describes each contracting option in detail.