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Negotiating contract rates based on salaries: 3 key tips to getting the best rate
3 key tips to help you calculate how much you should charge for your services.
�ing is because of the risks of being found inside IR35 , which can lead to them paying significantly hig� �t market rates for their specific skill. 3. Avoid contracting for past employers immediately after leaving The� �. Another key reason why contractors should avoid contracts with former employers immediately after leaving i� �Negotiating fair and market-based contract rates with clients that are based only on the equ�
Category: Articles: Job Search | Thu, 06 Oct 2016

How National Insurance Contributions (NICs) are calculated
Contractors may be liable to pay National Insurance Contributions (NICs). Calculating how much should be paid depends on the nature of their earnings.
�Most limited company contractors working outside IR35 pay little or no NICs because they pay themselves� �agency payroll and those on fixed-term employment contracts do. Unlike income tax, NICs are only applied to a� �cy payroll and those on fixed-term employment contract pay NICs Class 1 NICs rates for the 2013/14 tax y�
Category: Articles: Tax Issues | Thu, 02 May 2013

Company healthcare and gym membership benefits
You can pay for healthcare costs and gym expenses using your limited company although there will be a BIK charge - Find out more.
�ent sports facilities or onsite gyms come with an IR35 health warning “If a contractor has free use of a�
Category: Articles: Expenses | Fri, 06 Jan 2017

Contracting and subcontractors: tax, VAT and employment issues
Contractors subcontracting client work to other contractors should be aware of the tax, VAT and employment issues, says James Abbott of Baker Watkin.
�reclassification of employment status because of IR35 must be paid by the subcontracted contractor. Thi� �added tax ( VAT ). “A contractor may be earning a contracting income that keeps them just below the VAT registr� �ing the law.” Other factors: employees’ expenses, contracts and the ‘hassle factor’ Although there are no rul� �frequently no written agreement. Putting a proper contract in place is essential. It should be prepared by a�
Category: Articles: Limited Companies | Mon, 30 May 2011

Contractor guidance on record keeping for HMRC’s Business Record Checks
Contractors can easily ensure their records are in good order if HMRC undertakes a Business Records Check, says InTouch Accounting’s Paul Gough.
�rn (PAYE) compliance review, and possibly also an IR35 investigation.” Gough’s good recordkeeping checkl� �good business practice that support a successful contracting career. HMRC has a team of 120 specialists that i�
Category: Articles: Limited Companies | Mon, 21 Nov 2011

Backdating dividend payments to a previous tax year is asking for trouble
Proper tax planning negates the need to backdate dividends, which is illegal and attracts unwanted attention from HMRC, says Intouch’s Duncan Strike.
�ake from the company, whether they will be within IR35 and what the salary/dividend split will be if the� �s Whilst it is quite commonplace for directors of contracting companies to declare a dividend and leave the mon�
Category: Articles: Limited Companies | Thu, 02 Jun 2016

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.
�for which contractors should put aside money, is IR35 . As he says, “We all know that contractors’ past� �found to be within IR35 for one of their previous contracts, the fallout can be very costly . If there is any� �te sums for tax, and unexpected periods without a contract, Strike says there can still be plenty of cash le�
Category: Articles: Limited Companies | Mon, 09 Mar 2009

Contracting, subcontractors and AWR: when do the Agency Workers Regulations apply?
Contractors subcontracting client work to other contractors may find the Agency Workers Regulations could apply.
�is a very different test from those applied under IR35 . Subcontractors who qualify as out of scope The� �kers.’ And an agency worker ‘is someone who has a contract with the temporary work agency but works temporar�
Category: Articles: Agency Workers Regulations | Tue, 15 Aug 2017

Advantages and disadvantages of contracting
Contracting offers skilled knowledge workers much more than the opportunity to substantially increase their earnings, although pay’s a major factor.
�minimise the time you spend running your business IR35: This is a limited-company-contractor-focused pie� �Contracting can deliver skilled knowledge workers a huge rang� �ours and locations Holidays: When you are between contracts, you can choose to take as much or as little time� �you want more money, you can choose a better paid contract) Improved work/life balance: It is amazing how mu�
Category: Articles: First timers | Thu, 12 Oct 2017

Why contractors make more money than employees
Employees make less money than contractors. It’s that simple. Taxes and the inability to deduct expenses take a terrible toll on what employees earn. Contractors don’t have these burdens.
�es the necessary steps to ensure they are outside IR35 . The cost to the company is the same. The contra� �this way, the reality is, that if you manage your contracting career and keep yourself in work, the rewards are�
Category: Articles: First timers | Mon, 21 Aug 2017