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info@commonwealthcontractors.comIf you go into business with your own Contractor Limited Company you need to know which of your contracts are Inside IR35 and which are Outside IR35. If you take Dividend Income from a contract Inside IR35 you could wind up with a large tax bill at an HMRC Investigation.
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If you want to work as a professional Contractor in the UK you need to know about IR35… especially if you’re thinking about going into business with your own Contractor Limited Company!
If you’re a professional Contractor and you’re interested in joining an Umbrella Company Commonwealth Contractors can help! We work with Umbrella Companies who specialise in looking after highly skilled expats on temporary UK Work Visas!
Umbrella Companies make it very easy to work as a Contractor. All you have to do is generate billings and send in regular timesheets and expense claims… the Umbrella Company does the rest!
With an Umbrella Company the vast majority of your Income will be paid further to the Pay as You Earn (PAYE) system; therefore you will need to pay Income Tax, Employees National Insurance and Employers National Insurance on the sum.
With an Umbrella Company you can normally look to reclaim the cost of certain business related expenses that are incurred further to a contract. Expenses may include; Travel, Subsistence, Hotel / B&B Expenses, Professional training, Postage & Stationary etc. Expenses reduce your taxable income and boost retention!
If you are thinking about using an Umbrella Company you need to weigh up the Pros & Cons versus going into business with you own Contractor Limited Company.
An Umbrella Company is a readymade Invoicing & Payment vehicle for Freelance Contractors. The Umbrella Company acts as the ‘ultimate employer’ whilst the Contractor works on site at a Client, normally via an agency.
If you’re planning to work as a professional Contractor you need to make sure that you’re not using a ‘Managed Service Company’, otherwise you could find that you face a large Income Tax and National Insurance bill down the line.
As a Contractor it can be difficult to get a Loan or Mortgage. Traditionally lenders tend to penalise Contractors when it comes to getting a Mortgage, with permanent employees seen as a much safer bet.