Whether you set yourself up as a Limited Company or as a Sole Trader, looking after your financial records is vital to ensure you pay appropriate Income Tax, National Insurance, VAT, Corporation Tax, Student Loan Repayments or anything else that may be applicable to your situation. We’ve taken a look at what constitutes best practice so that you can make sure you pay the right amount and don’t face any repercussions for underpayment.
The UK contractor industry overall has seen a sustained period of growth over the last few years, with the number of contractors reaching never seen before levels, and making a huge economic impact. The reasons for this are well documented already, with key factors being people creating their own jobs after the economic crash, as well as people becoming increasingly aware of the benefits of a strong work-life balance.
But exactly who are the people and industries fueling this growth?
LinkedIn can be invaluable for contractors, particularly in terms of advertising your skills and services and being visible to hiring managers and recruiters in your sector. However, there’s more to LinkedIn than just uploading your CV, leaving it there and hoping somebody spots it. We’ve pulled together some top tips for making sure your profile is at the top of searches.
Becoming a contractor after being in permanent, full-time employment can be a daunting step to take, so the last thing you want is someone telling you that you might be doing it wrong. But so many new contractors make the same initial mistakes as each other that you can learn and (hopefully) avoid making them yourself.
At Kingsbridge, we speak to contractors all the time so we’ve pulled together some of the top mistakes they wish they hadn’t made when they were new to the game.
Our customers often ask us why they need a certain type of insurance cover, and we’ve always found that the best way to explain is by giving them examples. As you may already know, here at Kingsbridge we provide a single, easy to manage package of insurance containing all the cover a modern day contractor or freelancer needs (specifically Professional Indemnity, Public Liability, Employers’ Liability, Directors’ and Officers’ Liability, and Personal Accident cover). One of the most commonly claimed on parts of our policy is Professional Indemnity (also know as PI).
If you’ve been keeping half an eye on the back pages recently, you’ll know what happened at Old Trafford last weekend. To cap off an already abject season, Manchester United’s match against Bournemouth was called off just before kick-off due to the discovery of a ‘suspect package’ in the stadium. Unfortunately, said suspect package wasn’t the long-absent free-flowing, attacking football that the club are famous for, but rather a fake bomb mistakenly left behind and attached to wiring in the toilets after a terror exercise in the stadium the previous week.
At Kingsbridge, we often get asked certain questions time and time again. We don’t mind of course – that’s why we’re here. In fact, we thought it might be a good idea to put some of those questions up on the blog so you’ve always got the answers to hand when you need them.
Does the client not cover my insurances?
As you are not a permanent employee of the end client you would not be covered under their insurances unless specifically stated otherwise in your contract. If you make a mistake or damage something the end client is the most likely party to make a claim against you. In addition as a limited company you are your own entity and are not supposed to be under the supervision or control of the end client. Having your own insurance is a key IR35 indicator as it demonstrates you are a bonafide company and fiscally responsible for your own risk.
It’s one of the horrors of being a contractor: you do the work, submit your invoice, wait the required period and then no payment materialises. Often, a late payment can be an honest mistake but sometimes, sadly, clients or companies may hold out on you so you need to make sure you are protected. We’ve gathered our years of experience working with contractors to put together this guide on avoiding and dealing with late payments.
When you first move to become a contractor, the idea that you might be sitting there with nothing to do and no income is, quite frankly, terrifying. Of course, once you’ve been self-employed for a while, you’ll have word-of-mouth and referrals behind you, which will see offers of work coming directly to you. This blog, however, will give you some tips and ideas on how to find work as a new contractor, besides the more traditional job boards.
There are lots of apps out there that are useful to contractors and freelancers, helping you keep your workload, business admin and even mental health in check. However, the sheer number of them can be a little overwhelming so we’ve rounded up some of our favourites.
With all the political machinations currently taking place, it’s easy to forget that the new tax year begins today. As of midnight on 6th April a number of new policies took effect, including several that’ll have an impact on contractors and independent professionals. Although the most recent Budget still looms rather large in the proverbial rear-view mirror, these changes relate to the Budget that took place in July last year.
First and foremost, the tax rules surrounding dividends are now changing. The first £5,000 of dividend income earned by shareholders will be completely free of tax, with any amounts over that initial marker being taxed at 7.5% (for any income falling within the basic rate band). Beyond that, higher rate and additional rate earnings will also be subject to higher tax levels of 32.5% and 38.1% respectively. Although this will likely affect the take-home pay of many contractors, it could be by as little as 2% to 4% (see this article on ContractorUK for a more detailed breakdown).