dominiquecidas's Space http://dominiquecidas.posterous.com Most recent posts at dominiquecidas's Space posterous.com Sat, 21 Jul 2012 03:18:10 -0700 Using an umbrella company will take the trouble out from your tax affairs http://dominiquecidas.posterous.com/using-an-umbrella-company-will-take-the-troub http://dominiquecidas.posterous.com/using-an-umbrella-company-will-take-the-troub

As a contractor your abilities most probably lay inside the engineering or technical area, they don't include accountancy or any other admin skills. However as a contractor you are obliged to complete a self-employed tax form every year. This is where operating through an umbrella company makes life much easier.

A lot of businesses see an advantage of hiring contractors since most of their work is completed over a short-term project basis. However, the government keep bringing in extra regulations as they're just always suspicious about contractors as they find it difficult to cope with anyone who is not on PAYE. Therefore the entire business results in being over-regulated and confusing for people who just wish to do their day job.

A lot of businesses are happier if you work through an umbrella company

When you happen to be talking to recruitment organizations there's a strong likelihood that one of the questions they ask is whether you utilize a limited company. They do that since it covers them over tax measures. You might have formed your own limited company and do all your work through that, but plenty of businesses and agencies do like you to utilize an umbrella company. This is because they're just more accustomed to working in this way, and also have generally built up a great rapport with these businesses.

Managing your self-employed tax arrangements and payment schedules

As a self-employed contractor you need to hire somebody with accountancy proficiency to sort out your salary and costs, and perhaps even your VAT, and that can all become very pricey. In all probability you will probably even have to have created a limited company too, just to be able to do your job. This involves another cost as corporation tax will probably be involved. Though your accountant might complete all of the forms for you, and send them off, they are still your responsibility so you need to at least have some knowledge of what they are doing.

Why can an umbrella company help

When you choose to work for an umbrella company you actually become one of their employees. This implies that they will do your invoices, sort out your income tax payments in the best manner, furthermore keep you clear of the IR35 policy. Obviously they have a fee for doing all this, but it may be much lower than your accountancy costs would be. It's a win-win situation since you get paid, your tax dealings are sorted out, and all you've got to undertake is send them your time-sheet on a recurring basis.

Your next step should be to find out how an umbrella company will make life easier for you. You can go here: best umbrella company. And stop worrying about dealing with your taxes when you click here: learn more.

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