Could you benefit from the Rent a Room scheme?
Do you have a spare room in your home? Maybe your kids have grown up and have moved out? Or, you’ve moved into a new property and you find you have spare space? Instead, of converting this space into a [...]
Claiming interest on buy-to-let mortgages as a contractor
Anyone who has rental property or works in tax will know about the relatively recent changes HMRC have made to how landlords are allowed to claim the interest on their mortgages. See below: % of Mortgage Interest can be deducted [...]
Charging interest on late payments
According to the Federation of Small Businesses (FSB), late payments by clients causes 50,000 small businesses to go under each year. This is estimated to cost the UK economy £2.5 billion. For contractors and freelancers, the personal cost of late-paying [...]
Thinking about changing your company car? Why waiting until 2020 could be a good idea
If you’re a contractor who is thinking of purchasing an environmentally friendly company car through your limited company, due to the car benefit changes, you may be better off waiting until 2020 to do it. Tax on company cars [...]
How to improve cashflow in your contracting business
According to research 8 out of 10 businesses fail within their first two years of operating. The number one reason is poor cashflow. The company could be making huge sales, but if their overheads are equally large or if their [...]
Are there any benefits to retaining a limited company while working ‘inside’ IR35?
Contractors are used to hearing that it’s best to avoid contracts which place them inside IR35. The main reason being that there’s a fair chance you’ll be deemed to be an employee and tax and NI will be deducted at [...]
IR35 in the private sector: draft legislation announced
Contractors’ questions on the new ‘off payroll’ working reforms are beginning to be answered, as the government announces draft legislation for the Finance Bill 2019-2020. IR35 in the private sector, as it is commonly referred to, is due to [...]
5 ways to increase your take-home pay
One reason why people choose to become contractors is that they can have the ability to earn more than they did as an employee. This is because they can charge higher rates and if they think about how they structure [...]
Upskilling and CPD for contractors
As an independent contractor the majority of your time is spent on client work (as this is what pays the bills!) but as more people choose to become contractors (figures for 2018 show that there around 1.77 million people are [...]
What are dividends and when can they be paid?
If you’re an independent contractor who is working through your own limited company, as well as being a director, you will also likely be a shareholder. This means you are entitled to receive dividend payments on any retained profits that [...]
Research and Development tax credits explained
The government wants UK companies to succeed. It’s great for employment and training and overall successful companies boost the economy. To help companies be successful the government provides an incentive in the form of tax credits, to companies who are [...]
Restoring a dormant limited company
There are those who will only ever work as a contractor, and there are those who dip in and out of it. This could be because they are tempted back into a permanent role by great benefits or their personal [...]
Tax Planning for 2019/20
For the 2019/2020 tax year, tax allowances and rate bands have increased. In this article, we demonstrate what that means to contractors in real terms, and offer our advice for trading as tax-efficiently as possible.3 ways to trade tax-efficiently for [...]
Making a will as a contractor
We all know that we should make a will, yet figures released in 2018 by Unbiased show that a staggering 60% of UK adults (approximately 31 million people) don’t have a will. Reasons given for not making a will include [...]
Can I reclaim expenses from before I formed my limited company?
If you spent money on setting up your business before you incorporated it, you may be able to claim for some or all of these pre-trading expenses, as long as they are legitimate business expenses.This article looks at what is [...]
How to claim childcare costs as a contractor
Childcare costs in England are one of the highest in Europe, according to research by the OCED. The average cost for a child under two in nursery, is £122.46 per week (on a part time basis) and £232.84 per [...]
Late payments: what are your rights?
Working in the service industry means that at some point you will encounter a client who fails to pay your invoice on time. Chasing clients for unpaid invoices can be stressful and it also wastes a lot of time. On [...]
Private sector IR35 reform – what it means for contractors
When the reform to the Intermediaries Legislation (also referred to as IR35) was introduced to the public sector in April 2017, many in the industry speculated it wouldn’t be long until it was extended to the private sector. Well, they [...]
Latest legislation affecting contractors
Contracting can be one of the most rewarding ways to work – it gives you greater flexibility over who you work for and when you work. It can also provide the opportunity to work on some truly awesome projects.Yet, anyone [...]
Flat Rate Scheme: What to do if you are on the wrong trade sector
The VAT Flat Rate Scheme was introduced to simplify the process of calculating VAT returns. The premise of the scheme is that you pay a fixed rate of VAT based on which trade sector your business falls into. However, choosing [...]