All operating UK resident contractors who earn an income (regardless of its source) that is not taxed at the time of receipt are legally required to use the self-assessment tax method, which involves submission of details such as the amount of income and capital gains tax. Some individuals find this quite a difficult tax, even… Read More »
The two most common forms of work as a contractor are to operate under the guidance of an Umbrella company or to start a limited company and work for yourself. Unfortunately (but predictably), those that opt to work under an umbrella company are required to pay a regular fee for the services that the company… Read More »
Contractors used to be able to “fly under the radar” so to speak, but with an increasing number of individuals choosing the contractor route, the focus on them has increased. In 1999, HMRC and the Inland Revenue made a statement professing their dedication to changing the way contractors are taxed in order to limit the… Read More »
Contractors, particularly those that operate through their own limited company rather than an umbrella company, will have to deal with a range of legal issues and contracts as part of their work. This may be a cause for concern for many contractors but with a good understanding of what to look out for, can be… Read More »
National Insurance is a form of tax payable to the UK government that is used to pay for certain benefits that you will receive such as the free services of the National Health Service (NHS), the government pension you will receive when you reach retirement age as well as other forms of benefits that are… Read More »
Contracts can be a difficult problem that contractors have to face, especially for those with limited experience in this area. Once a contract has been agreed, neither party can make changes to it without the other persons permission so it’s important that you raise any concerns you have before you sign it. Do Not Work… Read More »
Contractors, regardless of whether they intend to operate through a limited company or umbrella company, are required to pay income tax just like any other income-earning individual in the UK. The actual amount that needs to be paid is dependent on the amount that the individual is earning, with increasing income accompanied by increasing tax… Read More »
The IR35 is the most discussed piece of tax legislation that affects contractors. The idea behind the legislation is to stop what the HMRC believe amounted to tax avoidance by contractors who are operating through a limited company. It’s intention was to make sure that those individuals working through a limited company were not paying… Read More »
As you may already know, VAT stands for Value Added Tax and is a tax that is added to almost every product and service anywhere in the country. The VAT currently stands at 20% having increased by 2.5% from 17.5% during the recent economic crisis. However, those contractors who decide to operate through their own… Read More »
Working out whether you are liable for a tax refund is quite an easy thing to do as it is all comes down to the salary allowance you are given by the British government each year, which is entirely tax free. The current tax-free personal (so doesn’t apply to a Limited company, although a contractor… Read More »