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Using PayStream's umbrella companyIf you are new to using an umbrella company PayStream's My Max umbrella service could be an attractive option. Such services look after all the administration involved in working as a contractor including the payment of taxes whilst assisting you with maximising your take home pay. PayStream operates the My Max umbrella service, which allows contractors to enjoy being paid on a PAYE basis whilst also offering the benefits and the freedom offered by contracting. What is an umbrella company? An umbrella company is a business that offers employment and payroll services to contractors wanted to work under a contract of employment while carrying out fixed-term assignments, usually sourced by recruitment businesses. Such firms take the hassle out of contracting by dealing with all the paperwork, payroll and tax issues, leaving you free to concentrate on important tasks such as securing work and completing jobs to deadline. PayStream's My Max umbrella service will take on the task of invoicing the agency on your behalf and collecting the money. It will then process payments to you on a PAYE basis, after applying tax-deductable expenses. By offsetting them against your income you can ensure you are maximising your take home wages. Working as an employee of an umbrella company means that you will not normally need to complete a personal tax return, and you can rest assured there are no other company returns for you to complete such as VAT or PAYE returns. It’s also a relief to know you won’t be receiving an unexpectedly large bill at the end of the year from HM Revenue & Customs. You will also avoid any IR35 or Managed Service Company (MSC) legislation worries because you are taxed at source at employed levels. In terms of your employment status, you will be regarded as an employee of the umbrella company and will enjoy full statutory employment rights. But this will not impact on your freedom to pick and choose the contracts and projects you take on. Who are umbrella services suitable for? Any freelancer or agency contractor may be able to benefit from using an umbrella company to look after their affairs. If you are new to contracting, using an umbrella service can help you to adapt to your changed working environment without having to worry about paperwork and tax returns. Experienced contractors can also benefit from umbrella companies. Using My Max can ensure you don't have to worry about IR35, as well as cutting the amount of paperwork you have to do and allowing you to forget about dealing with HM Revenue & Customs. Why choose PayStream's umbrella company? Our My Max service is staffed by experienced advisers and account managers who have a real insight into what contractors and freelancers need. The team will help to ensure you maximise your take home pay and minimise the amount of administration you have to do. For a free, no-obligation personalised quote or just to discover more about our umbrella service, call us on 0800 197 6516 or visit the PayStream website. Finance articlesHow to form a limited company If you are confident that you will fall outside of the IR35 regulations and would like to minimise your tax burden, then you should be looking to operate as a limited company contractor. But how do you go about setting up a limited company? Umbrella vs limited company – which is right for you? If you're looking to become a contractor, then you need to consider the two main options open to you – operating as a limited company or using an umbrella company. However, you must also be aware that this decision may be taken away from you. How does the 24-month rule impact those utilising umbrella companies? The 24-month rule is something most people have come across, but many will admit they do not fully understand what it is. However, it is particularly important and must be considered when submitting paperwork to HM Revenue and Customs (HMRC). What allowable expenses are available for the self-employed? Working for yourself makes for an incredibly exciting career choice. Not only do you get the chance to set your own hours and choose the projects that excite you the most, but it enables you to operate in a highly tax-efficient manner. Being self-employed also potentially allows you to receive a significantly higher income in comparison to doing the same kind of work as a permanent full-time employee, most notably as you could off-set tax against the expenses that you incur. How the forthcoming Real Time Information system will affect reporting payroll data Being a contractor gives professionals the freedom to select their own working hours and choose the projects they work on; however, with that comes the need to look after their own payroll and tax issues. With HM Revenue and Customs (HMRC) set to introduce a new payroll reporting system later this year, now is the time for professionals to make certain they are aware of the changes this will entail. What can setting up as a limited company offer contractors at the start of their career? Although difficulties in the global economy continue to persist and many Britons struggle to find permanent employment with a company, there appears to be a greater than ever desire among people to work for themselves. Health and safety issues for contractors to consider While being a contractor gives you the freedom to set your own hours and choose the projects that interest you the most, you need to remember that there are many things that you need to take care of beyond the current assignments you're working on. These include, among others, sorting out expenses and making sure that you pay the right amount of tax. Another area that also requires great consideration is safety. Tips for contractors to prepare for a tax inspection Being a contractor sees you have the freedom to choose your own business hours and what projects you work on, but it also means you are responsible for keeping on top of your tax affairs. As such, you should be prepared to have a VAT review from HM Revenue and Customs (HMRC). Read on to find out more. A look back at 2012 for IT contractors Although 2012 was a largely challenging year for many British workers and the UK economy as a whole, it appears IT contractors have defied the difficult financial climate. To find out more about the experiences of such professionals during the last year, read on. Tips for contractors looking to get work from agencies One of the most exciting things about being a contractor is having the freedom to work on a range of different projects, although it does mean you always need to be looking to source new contracts. Given the ongoing difficulties in the global economy, it has become more important than ever to do everything possible to get work from agencies. How will auto-enrolment impact contractors? At the start of October 2012, the government launched its auto-enrolment pension initiative as part of efforts to help all workers be able to make adequate financial preparations for retirement. As auto-enrolment is set to see each employer automatically enrol staff on to a workplace pension scheme, now is the time for contractors to consider what impact it will have on their operations. Advice for keeping on top of expenses If you're a contractor, it's vital you manage your financial records closely and ensure your expenses are in order. While, admittedly, you might find you are unable to devote as much time to doing this as you would like, particularly when attempting to obtain contracts and working on existing projects, it is incredibly important that you pay close attention to this. What new construction contractors need to know about the CIS Construction contractors need to make sure they follow official protocols set out by the government, including the Construction Industry Scheme (CIS). If you are unsure of everything you need to do to comply with the initiative, it is worth reading this guide. Top 5 things new contractors should know Before you launch your career as a contractor, it is important you are aware of everything you need to know first. There are many financial implications you should consider, from paying tax to employing others – here are five things you need to pay attention to. Is new legislation necessary to tackle off-payroll remuneration? Later this year, new rules are to come into force affecting contractors in senior positions in public sector bodies. However, one organisation has questioned the need for the new rules, claiming that legislation is already in place. How do you set up a limited company? If you have decided on the limited company structure, you need to know how to go about setting up the firm. There are various steps you need to take, although the overall process is relatively straightforward. How limited company contractors can benefit SMEs New research has shown that small and medium-sized enterprises can benefit financially by taking on contractors to complete tasks as opposed to hiring a permanent member of staff. However, the study also highlighted the need for IR35 compliance. Why have contractor pay rises outstripped those of permanent staff? New research has shown that contractor rates of pay have grown by 3.7 per cent year-on-year, compared to a rise of just 1.5 per cent for those in permanent employment. The questions is, why are contractor rates outstripping rises for permanent staff. A guide to Primary Path vs. HMRC Primary Path vs HMRC saw the authorities chase £25,000 in unpaid taxes, claiming that director Phil Winfield was a disguised employee of his client GlaxoSmithKline. However, did HMRC win the case or did Mr Winfield emerge victorious? How important is social media for contractors? Social media has become part of everyday life for many people, however, aside from the social benefits, what use are sites such as LinkedIn, Facebook and Twitter to contractors from a professional point of view? Questions to ask accountancy services providers Many contractors who operate through limited companies hire accountancy services providers to take care of their book keeping and other administrative needs. If you intend to do this, you need to ask certain questions of each provider before signing. What is the IR35 business entity test for contractors? HMRC is set to release a new test for limited company contractors to help them ascertain their IR35 status. The test is not a replacement for the law but designed to help contractors determine whether they are inside or outside the legislation. FAQs about IR35 legislation If you choose to set up a limited company, you need to be aware of IR35 and the importance of complying with the it. IR35 was introduced to stop contractors operating as disguised employees which meant they could reduce their tax liabilities. A glossary of important terms for contractors If you plan on becoming a contractor, there are words and phrases you need to understand. Depending on whether you work through an umbrella company or set up a limited company, you need to understand certain terms relating to tax and other issues. Should you hire an accountant to file your personal tax return? Your personal tax return is something you need to get right, as any mistakes can cost you time and money. You therefore need to make a decision as to whether or not to hire an accountant to complete it for you to ensure everything is in order. FAQs about umbrella companies If you are considering becoming a contractor, you need to know about umbrella companies and what they do. Many new contractors use umbrella companies, as they take care of the administrative side of their affairs and ensure they pay the right tax. FAQs about limited companies Many contractors choose to set up a limited company thanks to the various tax benefits and the limited liability should the business fold. If you are new to contracting, it is important you know all about limited companies and how they work. What does setting up a limited company involve? Establishing your own limited company has many benefits and it is something many contractors are doing. In order to trade as a limited company, you must first register with Companies House and provide certain pieces of information. Umbrella company vs. Limited company – which is most suited to your needs? Working as a contractor requires you to choose between setting up a limited company or using the services of an umbrella company. Both have their advantages and disadvantages, so you must do thorough research before coming to any decision. Why have umbrella companies grown in popularity? In recent years, the number of contractors employing the services of an umbrella company has grown significantly. There are several reasons for this, including convenience and the fact that they can handle issues such as tax and payroll processing. The importance of using a provider with an emphasis on IR35 compliance IR35 compliance is one of the most important issues to think about as a contractor, as the consequences of falling foul of the legislation can be severe. An accountancy service provider with an emphasis on compliance can help you in this area. Why it pays for contractors to use accountancy services Accountancy services can save you time and possibly problems with your tax returns and other financial matters. As a contractor, you are responsible for your taxes, so if you are unsure about this area, employing experts can relieve the burden. What are the benefits of setting up a limited company? There are lots of benefits to setting up a limited company, including tax advantages and the limited liability shareholders are exposed to. If you are unfamiliar with setting up a limited company, there are companies that can help you through it. Benefits of umbrella companies for contractors Becoming self-employed can be a very challenging time, as there are many things to think about. However, using the services of an umbrella company could help contractors and freelancers make the transition easier to handle. Read on to find out why. Top tips for choosing an umbrella company If you are a contractor, you may be considering securing the services of an umbrella company in order to get some help with your accountancy and administrative commitments. So, just how do you go about choosing such an accountancy service provider? What help is available for people setting up a limited company? A limited company is defined by the liability of its members being in proportion to what they have guaranteed to or invested in the firm. However, to make sure the business gets off to a good start, people might want to ask for outside help, of which there is plenty. When might you need the services of an umbrella company? If you have recently become a contractor, you might find you require the services of an umbrella company. While it is not a legal obligation to work with such a firm, it can have many benefits for you and your business by saving you time and hassle. What services can I expect from an umbrella company? You may have heard the term contractor umbrella company before, but what exactly is it? Where to find useful information and guidance for contracting When you strike out on your own and begin contracting, you may enjoy all the benefits of being your own boss – but when you need advice, where should you turn? What is IR35 and how has it affected contractors? If you are working as a contractor it is likely you will have come across mentions of IR35 – but what exactly is it? The difference between an umbrella company and a limited company If you are planning to embark on a freelance career but don't know how to go about being self-employed, the first thing to work out is whether you want to set up your own limited company or sign up to umbrella services. The benefits of a limited company contractor If you are in the process of setting up a limited company then the benefits of operating in this way are numerous. What is an umbrella company and how can it help a contractor? If you are a freelancer who wants help with your accounting but can't afford to break the bank, an umbrella company could be just what you need. But what exactly is this? |
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