Tax and contracting News
28 - 04 - 2021
When it comes to big decisions in life, we usually have a lot of questions. This is definitely the case when it comes to deciding on working for yourself. Whatever reason prompts you; you want to know how to do it right.
Many inquiries we receive all feature the same questions:
· How will I keep records?
· How do I charge/invoice?
· How much tax will I pay?
· What about expenses?
· How much would professional advice cost when I need it?
A good step would be choosing an accountant who understands what you want as a service, they know how your industry works, and provide timely advice to keep you up to date.
Accountancy services come in all shapes and sizes. First of all, check that your accountant is qualified and regulated. You wouldn’t choose an unqualified solicitor or surgeon so why settle for an unqualified accountant?
Next, find an accountant who understands your small business, when you have an initial conversation, ask how their client base is structured.
Specialist accountants, like Foremans LLP, who are ICAEW regulated, are able to advise you on keeping your company running successfully throughout the financial year, and keep you compliant
· We ensure all your invoices are raised and sent to your clients for you.
· We calculate all your business expenses and advise on the tax treatment of them.
· We calculate your tax liabilities and advise on an ongoing basis.
· We provide advice freely throughout the year.
· We provide you with an online access so you can upload your documents and then leave them to us.
· We advise and register you with VAT, PAYE etc, if required, and complete the returns for you.
· We complete your Annual Self Assessment Tax Return.
· We provide free business insurance (STC).
And done for one fixed monthly fee.
In other words, choosing the right accountant can make things a lot more stress-free for both you and your business, and you’ll know that your business is being taken care of by experts, leaving you free to concentrate on your own area of expertise.
Foremans are a multi-disciplinary professional firm employing dedicated experts to support the self-employed, sole trader, partnerships and small limited businesses. Supporting clients with the full range of tax planning, bookkeeping, accountancy and business development advice, Foremans have been working with clients’ for over 14 years and are specialists within the small business and contractor field.
We offer free initial advice and unlimited access to your own dedicated Advisor as we believe it’s the personal touch that counts most.
Why not contact us to see how we can help you get started?
contactus@foremansllp.com
Call us at 01244 625500
01978 364000
Play the Numbers
Instant comparison between the forms of business; see the effects of legitimate expense claims, consider Flat Rate VAT or just adjust hourly rates and time spent. Look for your personal jackpot.
Talk to Us
Of course in the end there is no substitute for targeted personal advice. Your individual circumstances matter. You need our expertise. Get a free initial consultation – probably the best freelance decision you will make!
Instant Information
Our tax calculator is speedy. It is designed to give you results as you enter valid data – on the spot, in front of your eyes! We update regularly to make sure it always reflects changes in tax law and practice.
WEEKLY INCOME INFORMATION
Income For A Week
Pre Tax Income
Choose the Industry Sector that you work in. Use the drop down menu in the usual way.
The VAT Flat Rate Applied -
-
RESULTS TABLES
COMPARISON TABLE FOR NET INCOME
RELATIVE INCOME BY STRUCTURE
Weekly by :-
Annually by :-
Weekly by :-
Annually by :-
Fixed Data
PAYE
Statutory rates
CIS
Corporation tax
National insurance
UMBRELLA COMPANY
AGENCY INFORMATION
Assumptions
General
- The user is over 21 and subject to tax in the UK
- The user wishes to minimise their tax liability
- The user is subject to national insurance i.e.he/she is not over retirement age
- Only current tax rates and limits are applied
- No tax mitigation payments are made e.g. pension contributions
- Only 3 digit letter 'L' tax codes shown in the drop down list can be entered
- The user does not have a turnover greater than £100,000 where fewer reliefs and or higher taxes may apply
Expenses
- All miles claimed as expenses are for business use using a personally owned car or van
- All other expenses claimed are wholly, necessarily and where appropriate exclusively for the benefit of the business
Foremans LLP Charges
- Foremans fees associated with Limited Company, Sole Trader or Umbrella are as per published rates
- Foremans current Service Costs are allowed for in all calculations.
Holiday Pay
- Holiday pay is accumulated week by week by Umbrella or Agency employer but paid out during the year
VAT
- Limited Company or Sole Trader will be VAT registered
- Limited Company or Sole Trader will take advantage of Flat rate VAT
- Flat rate applied includes the benefit of the additional 1% applicable to the first year of VAT registration
Limited Company Conditions
- One director / one shareholder in a Personal Service Company
- Director of Personal Service Company elects to vote for 100% dividend after salary, costs and expenses
- Director's salary is maximum salary to the primary threshold for NI
- The Limited Company is trading normally i.e it is not subject to IR35 and is not a Managed Service Company
NOTES
- The Current tax rates are taken from the Fixed Data Table
- The current Value Added Tax Rate is 20% and is applied to all invoices and expenses as appropriate
- The Director's Salary is fixed in relation to National Insurance thresholds. Higher Rate Taxpayers should consider the advantages and disadvantages of a larger annual salary or bonus
- Higher Rate Taxpayers may wish to consider the advantages and disadvantages of shared ownership of their business
- Users with a tax code other than three digits and letter "L" may telephone or email our Development Department to request a detailed calculation
- Generally the use of an Umbrella rather than an Agency payroll is only efficient if sufficient weekly expenses are allowable and claimed
- The expenses claimed under an Umbrella should not prevent the proper operation of National Minimum Wage
Dave Wilde, Foremans (UK) Limited
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