Many contractors are required to operate through limited companies. We can establish this for you and explain what expenses you will be able to claim.
What you will earn from your contract will be determined by whether your assignment means that you are caught by IR35 (otherwise known as the Intermediaries Legislation).
You should make sure that your contract is reviewed specifically with IR35 in mind. Some of the indicators that may mean that you are working with an IR35 assignment are as follows:
- Based solely at the client’s premises with no flexibility to work from your office/home
- Required to attend either within certain hours or to clock in and out
- You are named as the person providing the services with no ability to provide a substitute
- You are paid on a time basis
- You use equipment and have an email address which is that of the company you are contracting at
- You can also use the Employment Indicator Status tool on the HMRC website using the following link:
http://www.hmrc.gov.uk/calcs/esi-01.htm
Contractor Accounting Services
If you fall within IR35, we can provide you with an umbrella company services: we process your timesheet, provide you with a payslip, process your expenses and ensure you are covered with all necessary insurances. This gives you peace of mind and is easy to set up. Contact us to find out more about our umbrella company.
If your contract falls outside of IR35, you have greater flexibility and we can help you in deciding the best way to extract funds from the company to minimise your tax.
We can produce your accounts and corporation tax return at the end of the year for filing at HMRC and Companies House.
Tax expertise that benefits you
Most contractors could pay less tax. We can help you achieve that. If you’d like to maximise what you earn from your contract, or if you have any questions about IR35 compliance, get in touch.
Become a client and get 15% off your first year membership fees with the Professional Contractors Group – the leading UK professional association supporting, protecting and promoting the interests of consultants, contractors and freelance workers
For more information on contracting or any of our other services call Kath Docherty on 07743 767 687, or email info@candmservices.co.uk.