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6 classic barriers to starting contracting and how to beat them
Would-be contractors often believe that there are too many barriers to going contracting, but most can be overcome, or are simply contracting myths.
�Contracting is often seen by would-be contractors as having t� �. This is a contracting myth. There are plenty of contracts out there that need a contractor to help manage c� �on into contracting, then you will find that each contract adds to your skills and experience. You can also�
Category: Articles: First timers | Thu, 13 Apr 2017

Contractors rarely operate as sole traders
Contractors wanting to work as a sole trader will find agencies and clients won’t work with them. Here's why and the solution.
�d under PAYE schemes. In addition to all of this, contracting as a sole trader, even if it could be done, would� �qualified director for example – could still find contracts via an agency by joining an umbrella company or g� �. A sole trader contractor might attempt to win a contract with the client, but the client’s agreement with�
Category: Articles: First timers | Wed, 19 Sept 2018

What employee benefits do contractors not get?
Here are some of the important differences when comparing the situations of contractors versus permanent employees.
�eeker allowance between jobs Yes No 27 Freedom to contract (status cannot be overruled) Yes No 28 Subsidies:�
Category: Articles: First timers | Thu, 30 Jul 2020

Contractors who subcontract must comply with HMRC employment intermediary obligations
Contractors who subcontract are classed as employment intermediaries and must follow HMRC guidelines to ensure subcontractors pay the right tax.
�hat this means is, should the worker who has been contracted to complete the work be found to have not paid th� �ied: Personal service is a requirement There is a contract between the client and intermediary, or main cont�
Category: Articles: Tax Issues | Mon, 12 Oct 2015

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

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

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

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

Contractor guide to the General Anti-Abuse Rule (GAAR)
Contractors should take into account the General Anti-Abuse Rule (GAAR) when making tax-planning decisions, says James Abbott of Abbott Moore.
�houldn’t be a target. GAAR may become a threat to contracting in 5-10 years But Abbott’s concern is that HMRC h�
Category: Articles: Tax Issues | Thu, 11 Apr 2013