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Tax residency rules for individual contractors and contractor limited companies
Contractors and their limited companies are subject to legislation that clarifies their tax residency status, explains James Abbott of Abbott Moore.
�t of time in order that they can deliver on their contracts.” Depending on how many ties a contractor has, an� �xed in the UK. When working on a typical overseas contract where the contractor works from the client’s offi�
Category: Articles: Tax Issues | Wed, 12 Jun 2013

New VAT rate rules for contractors – changes due to the 20% rate from 4 January 2011
Limited company contractors will be required to change their invoices & VAT return accounting when VAT increases from 17.5% to 20% on 4 January 2011.
�for sales that span the rate change on 4 January: Contracts started before 4 January 2011 and completed after� �, for example, a contractor started work on a new contract on 4 January and submitted an invoice after worki�
Category: Articles: Tax Issues | Wed, 24 Nov 2010

Retrospective tax-reducing strategies for contractors who overpaid in previous years
Contractors can adopt tax strategies that may reduce their tax liability arising from previous financial years, says Abbott Moore’s James Abbott.
�d those who might have temporarily stepped out of contracting to work on a fixed-term employment contract . Abb� �of contracting to work on a fixed-term employment contract . Abbott explains: “As is the case with all contr�
Category: Articles: Tax Issues | Tue, 14 May 2013

Contractors’ guide to VAT
VAT is a contractor’s best friend if treated right, or worst enemy unless care is taken to keep to the rules. Here’s how to keep the VAT-man happy.
�Contractors who work through their own contracting limited company can potentially save a significan� �y that is not registered for VAT and only used on contracts with clients who cannot reclaim VAT, so that the� �VAT registration a disadvantage? Contractors who contract directly with their clients, rather than an agenc�
Category: Articles: Tax Issues | Wed, 07 Mar 2018

Moving buy-to-let properties into a company - issues to consider
Contractors might be able to mitigate the impact of buy-to-let tax changes by putting rental income into a company, says James Abbott of Abbott Moore.
�o have to find.” Contractors urged not to combine contracting and rental income For contractors who receive suf�
Category: Articles: Tax Issues | Wed, 25 May 2016

Marginal tax rates explained - how much tax you pay
You pay very different marginal tax rates depending on your earnings and business/personal circumstances.
�However, if the spouse has their own income from contracting or other sources, they may also fall into the sam�
Category: Articles: Tax Issues | Wed, 15 Sept 2021

Contractor guide to tax credits from HMRC: working tax credit and child tax credit
Contractors can qualify for tax credits from HMRC and should submit a claim in case their income unexpectedly falls, says Abbott Moore’s James Abbott.
�rwork. “Many contractors could spend their entire contracting career without ever qualifying for tax credits,”� �income drops, say for an extended period between contracts or on the birth of a new child. Eligibility crite� �ny, rather than a client. “Searching for the next contract opportunity, networking, checking job boards, app�
Category: Articles: Tax Issues | Mon, 08 Aug 2011

Contractor guide to negotiating personal tax payments on account with HMRC
Contractors experiencing a sudden fall in income might need to reduce their payments on account with HMRC explains James Abbott of Abbott Moore.
�ddenly, perhaps due to a prolonged period between contracts, or a rental property being empty, the payment on�
Category: Articles: Tax Issues | Wed, 14 Dec 2011

Key tax penalties imposed by HMRC on contractors
From late delivery of tax paperwork to giving the wrong information – HMRC can be unforgiving and will fine contractors who don’t play by the rules.
�owances. For example, a contractor may complete a contract in March at the end of the tax year but not invoi�
Category: Articles: Tax Issues | Wed, 14 Dec 2011

Contractors’ guide to the flat rate VAT scheme
Contractors can benefit from the flat rate VAT scheme by cutting admin & potentially enjoying a cash surplus, explains Abbott Moore’s James Abbott.
�AT percentages (as at tax year 2013/2014) for key contracting sectors include: Computer and IT consultancy or d�
Category: Articles: Tax Issues | Tue, 24 Apr 2012