Navigating Contract Work: A Comprehensive Guide
Guiding You Through Your Contracting Expedition
Contractors typically operate under two primary payroll setups – umbrella companies and limited companies. Each option presents its own set of advantages and disadvantages. However, the optimal choice for a contractor often hinges on their unique circumstances.
Umbrella PAYE
The simplest way to receive payment is through an umbrella corporation. Joining an umbrella firm is straightforward, and upon enrollment, you become an employee of the umbrella company. With this payroll method, you're relieved of the need to establish your own business or manage administrative tasks beyond submitting timesheets. Your umbrella payroll provider takes care of taxes, including income tax and national insurance, sparing you concerns about IR35 regulations. However, while umbrella businesses offer convenience, they may not maximize tax efficiency. If contracting through a limited company is viable for you, it could potentially increase your net pay.
Limited Company
Opting for contracting via a limited company stands out as one of the most tax-efficient approaches for numerous contractors. Establishing your own limited business could prove highly beneficial, regardless of whether you're embarking on your journey as a contractor or have been freelancing or working under an umbrella firm. While there are several avenues to establish a limited company, engaging a skilled contractor accountant can streamline the process, sparing you from certain administrative burdens and paperwork associated with its management. Dive into the concept of a limited company and uncover why it might represent the optimal payroll solution for contractors like yourself.
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Many first-time contractors are curious about their take-home pay when selecting a payroll service. Use our take-home pay calculator to estimate your weekly or monthly earnings if you work for a limited company instead of an umbrella company.
We are proud to have successfully assisted over a thousand clients, ensuring you are in good hands. Our priorities have always been customer service and compliance. When you speak with our staff, you will receive experienced and personalized guidance to help you start your contracting journey on the right foot.
Our services for first-time contractors include:
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Free consultation to review your situation and requirements.
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Outline the most suitable payroll option for you
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Explaining the basics of IR35 legislation and how it affects contractors
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Full administration support
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Unlimited tax advice
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Dedicated team on hand to answer your queries
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No minimum terms of service
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24/7 access to a secure, mobile-responsive portal
The right choice for you
When choosing between payroll structures, it’s essential to consider factors such as changing legislation and the typical length and value of a contractor's assignments. With many years of experience and an unbiased overview, we work with providers of both payroll structures.
Here are some of the industries where we can assist working professionals, though our services are not limited to these sectors. Feel free to contact us to see how we can help.