If you wish to continue to work as a self employed or freelance contractor, it is a good plan, if you have not done so already, liaising with a contractor umbrella company to make use of the payroll services given by these companies. Not only will you obtain CIS payroll benefits (if you operate in construction), but you will have a better level of stability this way, which is especially valuable these days. Even in tough times it is still desirable to be self employed, provided that there is enough work available.
One reason for this is that self employed traders are often required to pay not as much in national insurance contributions to HM Revenue & Customs. Another is that by being self employed you are able to offset your work-related expenditure against the income tax that you owe on your earnings. Also, of course, you have the final say over what contracts you take on, or decline to take on, which can be vital, especially to freelancers with more than one profession: if times are busy in a contractor’s first profession, he or she might reject contracts in his or her secondary profession until there is a fall in trade in the first. In other words, self employment is an excellent way to attach new strings to your bow.
Freelancers and sole traders from a whole range of different industries utilise the services offered by contractor umbrella companies. Whether you work in logistics, construction, teaching, Information Technology Services, or even social care, making use of payroll services can augment your earning potential and save you money at the same time. In addition, it can simplify the intricate procedure of ensuring that you are CIS compliant, according to the rules and regulations of HM Revenue & Customs.
A contractor umbrella company can provide qualified freelance contractors to its clients at short notice, enabling these clients to temporarily bring up their staff numbers in order to complete projects, without all of the associated hassles that they get with long term employees, such as sick pay, NI, maternity or paternity leave, and so on. In the construction industry, however, all transactions made to sub contractors must be made in compliance with the Construction Industry Scheme regulations (cis payroll). Umbrella companies can provide payroll services to sole traders, pending a successful registration process, checking, among other things, the sub contractor’s eligibility to work in the UK. They will have a system in place to process payments between themselves, their clients, and their sub contractors.
Please visit http://www.liquidfriday.co.uk/ for further information about this topic.
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