Contractors and the Data Protection Act (DPA) – what they need to know
The Data Protection Act (DPA) potentially impacts every UK business, including contractor limited companies.
Dividend income split between husband and wife unsuccessfully challenged by HMRC
Husband and wife contractor limited companies remain at risk of extra tax bills from Section S660, but HMRC has been unsuccessful in a recent ruling.
Contractor guide to charging VAT to overseas, non-UK clients
For most contractors whether or not they should charge VAT for overseas non-UK business clients is straightforward, explains Steve Crouch from Crunch.
Contractors who take long breaks between contracts should be aware of likely pitfalls
For many limited company contractors, taking long breaks is part of their reason for contracting, but James Abbott warns there can be pitfalls.
Contractor guide to splitting dividends
Splitting dividends with a spouse to maximise contracting income used to be the norm, but the Arctic Systems case changed the rules, says David Colom.
Online contractor accountant services: why they aren’t simply web-based spreadsheets
Crunch MD Darren Fell explains how online accountants are innovating and adapting to meet head-on the concerns and increasing needs of contractors.
How to set up and incorporate a contractor limited company online
Contractors choosing a limited company as their trading option can quickly and cost effectively incorporate online, using a range of options.
Tax issues for contractors who save large sums of money in their limited companies
Baker Watkins’ James Abbott explains why building up a large cash balance in a contractor limited company can end up costing contractors more tax.
Contractor guide to completing a statement of capital
What is a statement of capital and how should they be completed by limited company contactors?
What contractors need to know about investing through their contractor ltd company
Contractors can build up large sums in their limited company, but James Abbott of Baker Watkin warns that investing this cash can mean higher taxes.
Contractor guide to new model articles of association
As part of the changes introduced by the Companies Act 2006, limited company contractors should consider updating their articles of association.
Contractors and the rise of the online contractor accountant
Online contractor accountants are driving a paradigm shift in the way that contractors can record and manage their bookkeeping, accounts and tax.
Closing a contractor limited company tax efficiently using ESC C16
Contractors can dissolve their contractor limited company, taking the remaining funds tax efficiently using ESC C16, says Baker Watkin’s James Abbott
Counting the true cost of a contractor accountant
Derek Kelly of ClearSky Accounting explains how contractors can use a checklist to spot the hidden costs in advertised contractor accountant fees.
Contractor accountants: count the true cost with the ContractorCalculator checklist
Many contractor accountants advertise a monthly fee but don’t say what your money buys. Find out for sure with the ContractorCalculator checklist.
Contractor dividend strategies and administration for limited company contractors
HMRC can deem a dividend as salary and tax it accordingly if the correct paperwork is allowed to lapse, warns James Abbott of Baker Watkin.
Limited company contractors with contracts inside and outside IR35
Having contracts both inside and outside IR35 need not be complicated for limited company contractors to deal with, says Phil Richards of BFCA.
Skype chairman eyes contracting sector as next high-growth opportunity
Skype chairman Michael van Swaaij has an uncanny knack of picking high-growth hits. Good news for his latest investment, new kids on the block Crunch.
Contractor guide to Companies Act changes coming into force on 1 October 2009
The Companies Act 2006 has made sweeping changes affecting every UK limited company, with the final changes coming into force on 1 October 2009.
Claiming contractor limited company start-up expenses
Contractors can claim all their limited company start-up expenses, but it is essential to keep accurate records to prove the expenses are legitimate.
10 tips for choosing a contractor accountant
Once you've decided to trade using your own limited company, then choosing a contractor accountant is the next step.
Contractor limited company directors’ roles and responsibilities
Company directors have clear roles and responsibilities in their management of limited companies and failure to comply can result in severe penalties.
Contractor limited company checklist for moving company address
Moving business address can be stressful for contractors, but an organised approach will make the legal side of it relatively hassle-free.
Financial year-end checklist for contractor limited companies
The financial year end provides limited company contractors with useful opportunities, but timing is crucial and deadlines cannot be ignored.
Contractor dividend timing and dividend waivers
Calculating the dividend and managing the frequency of when to raise and pay dividends is not so simple, as Phil Richards of Blevins Franks explains.
Transferring shares within a contractor limited company
Splitting shares in a contractor limited company can mitigate tax liabilities, but there can be pitfalls, as Phil Richards of Blevins Franks explains.
Spending contractor limited company profits tax efficiently
According to Duncan Strike of Quay Accounting, contractors should be looking closer to home when deciding how to spend the cash in their business.
Keeping the cash flowing through a contractor limited company
Cash is still very much king and the contractor without money in the bank can come unstuck. The key is keep the cash flowing in the right direction.
Contractor accounting: limited company contracting and when to call your accountant
How can contractors manage their accounting for a contracting limited company and at what point should they call in the services of their accountant?
Contractors, directors’ loan accounts and borrowing company money
Contractors can take cash out of their contracting limited company but this could end up costing them large amounts of extra tax and NICs.
Checking annual accounts of your limited company when contracting
Contractors who work through their own limited company are required to prepare, check and submit annual accounts to Companies House for the business.
How contractors can close down their limited companies
If a contractor changes career path or decides for another reason that their limited company is no longer needed, they can choose to close it down.
Processing your company payroll when contracting via a limited company
Maintaining a company payroll seems a mundane task but Phil Richards of Blevins Franks explains it is a vital statutory requirement for contractors.
Processing fees for fellow contractors should be avoided
Tempting though it might seem to help a friend in need, contractors should resist invoicing on behalf of fellow contractors, as it could backfire.
How much salary should a contractor pay themselves as director?
Discusses the optimum level of salary to pay as a company director.
What is a ‘personal service company’?
Many contractors who work for clients through their own limited companies frequently find their business referred to as a ‘personal service company’.
Closing down your contracting limited company
Discusses the steps to close down your limited company
Dividends and contracting: calculation, payment and taxation
You may take dividends from your limited company whenever you are certain that there are after-tax profits to be divided up. Here's how you calculate them.
What contractors should know about the new companies act
The Companies Act of 2006 which is in the process of coming into force changes the way we have to run our limited companies. Here's how.
Choosing a company name
Choose something catchy and original but avoid using something too specific.
Setting up a limited company for contracting
Contractors have several options in setting up a limited company: breakdown of shareholding and purpose are important. You can do it all yourself, or a company formation specialist or an accountant can do it for you.
Declaring dividends: the paperwork - dividend counterfoils and company board minutes
There is little paperwork or reporting associated with dividend payments.
How contractors should run limited companies
There are a number of issues that contractors should be aware of in running their own limited companies.
Choosing an accountant for your limited company
Having decided to contract via the limited company route you will need to get yourself an accountant. This article explains the issues you should consider when choosing one.
Contractor demand for limited companies is stable with more confidence
Demand for limited companies has stabilised since the dramatic increase due to managed service company legislation, contractors who start these companies are more confident, according to company-formation specialist Duport
Working with foreign and offshore companies
Financial aspects to consider when dealing with companies outside of the UK.
Taking on your first employee - financial and legal issues
Consideration when deciding to expand your contracting business by taking on an employee.
Contractors have a new kind of company to use
You can share a limited company with other contractors and then work for it as self-employed. The Revenue has stated that, for the time being, these companies are not MSCs.
Contractors may find limited liability partnerships useful
A Limited Liability Partnership may have value for contractors. But a limited company is probably more useful.
Transferring company shares
Explains the processes for transferring company shares.
For contractors banking does not get easier
Price controls on small business banking accounts have been lifted by the Competition Commission. That means your bank account will probably cost you more in the coming year. And banking is not getting any easier either.
Contractors can run multiple businesses from one company
Contractors have every right to run as many businesses as they choose from their limited companies. They can also own other companies. But there are a few issues they should be aware of.
Contractors should choose limited companies if the fit is right
There is pressure in the industry on contractors to choose PAYE umbrellas for their businesses. Barry Roback of JSA shows that those for whom a limited company is a good fit should try one on.
Opening a company bank account
Advice and guidance for choosing and opening a company account.
Hiring a temporary resource – option and issues to consider
Options and issues to consider when deciding to hire a temporary resource.
When contractors need to change accountants
An accountant is a trusted business partner, but when you feel you need to change accountants, the process can be handled without excessive strife.
Sub contracting work: tax and accounting issues
If you decide to sub contract work then there will be tax and accounting issues to consider.
Contractors must choose advisors carefully
Under the legislation that regulates managed service companies, working with advisors can be touchy.
Could the personal service company be next for contractors?
The personal service company could be the next target of the Treasury.
How to change your accountant
Want to change your accountant? Find out what you need to do to move to someone else.
Contractors get qualified accountants from PCG
The Professional Contractors Group accredits accountants who are specially trained to help contractors. It is a precious resource.
Contractor guide to calculating taxes payable on dividends
Explains how to calculate any further tax payable on dividends you receive from your limited company
Should contractors with limited companies take salaries?
Contractors are wise to take some salary in the interest of avoiding the attentions of the Revenue.
How to prepare an invoice - examples and templates
How to prepare an invoice. Examples and templates.
Splitting dividends to maximise net income
Splitting company dividends can be an effective way of maximising net income. We discuss the topic and Section 660 issues.
Small business late payment - how to manage late payers.
Explains government legislation to protect small businesses and actions that can be taken to combat late payments.
Making tax efficient use of excess company profits
Discusses the tax effective options and issues for utilising excess company profits?
Preparing dividend counterfoils and company board minutes when declaring dividends
Explains how to issue the essential documents required when declaring dividends.
Using company money to start another unrelated business
Are you considering starting another unrelated business within your current limited company structure? The article explains the issues.
Making charitable donations from pre taxed income
We discuss the rules regarding donations to charity from your Limited Company.
Dividends – calculation, payment and taxation
Contractors using limited company structures can get significant tax advantages by paying themselves dividends. This article explains how dividends work.
Penalties incurred for late filing of forms
If you use a limited company for contracting you will need to file certain forms each year. If you don’t then you could be liable to substantial penalties.
Contractors annual company accounts - explained
A guide to the financial accounts that contractors working under a limited structure need to prepare each year.
A contractors legal obligations as a company director
Explains the legal obligations a contractor has as a director of their own limited company.
Making your contracting limited company dormant
How to make a limited company dormant and the responsibilities whilst it is dormant.
Running your limited company - a contractors guide
This article lists the on going responsibilities and obligations of running a limited company.
Moving from a limited company to an umbrella: reasons and practicalities.
Discusses the many reasons you might have for wishing to move together with practicalities of moving.
Setting up a limited company
This article discusses the practicalities of setting up your own limited company to use as a payment structure whilst contracting.
Choosing an accountant - checklist download
Download a checklist to help the decision of which accountant to choose.
Accounting for assets and depreciation in your accounts
Explains how assets and depreciation are accounted for in your Limited Company.