The introduction of the IR35 legislation led many contractors to feel targeted and uncertain with whether they would be seen as a genuine business in the eyes of the Revenue. This fear of becoming a “tax avoider” and having to pay penalties led to the development of umbrella companies which although provide a less risky method of working also delivers a smaller take home pay.
The majority of contractors will find, if properly reviewing their status, that they are better off setting up and running a limited company, where you become a director and shareholder, is the most tax efficient way of working. It also has a number of other advantages as opposed to working under an umbrella company.
Although IR35 becomes a consideration, good business practice is all it takes for compliance:
- Have each contract reviewed by an IR35 professional (FW Accounting provide a review service as standard through our compliance partners, Qdos Contractor)
- Review your working practices regularly during your contract, some contract reviews include assessments of your working practices
- Ensure your taxes are paid correctly and on time
Operating under an umbrella company shouldn’t be a long term solution. If you are still trading in such a manner, speak to one of our advisors who will help you review your status and whether this is the most tax efficient option for you.
Self Assessment – Q & A
Self-assessments. We have all heard of them, you maybe even know what they are. However, here at QAccounting some of our most frequently asked questions are about self-assessments. So below we have outline some of the most common questions we get asked, and the answers we get so tired of giving… just kidding.
Setting Up a Limited Company – 5 Key Things to Consider
If you are looking at going self-employed, then setting up as a Limited Company (LTD) may be the best option for you.
The Benefits of Having an Online Accountant
Here at QAccounting we are part of one of the UK’s largest contractor service providers. We started operating over a decade ago (around the same time DFS started their first sale) and have been dedicated to serving self-employed professionals ever since. One of the perks of choosing and accountant like QAccounting is that we offer all of our accounting services online.