If you are a sub contractor, working under a contractor umbrella, you should consider making use of payroll services, because they can enable you to retain your status as a self employed contractor, while helping you to ensure that you stay compliant to HM Revenue & Customs cis payroll rules and regulations.

As a sole trader, it can be important to you to retain your status as self employed. Reasons for this might be that you are obligated to pay less money in National Insurance contributions, and the ability to reduce the costs of your livelihood by offsetting expenditures against your tax liability when it comes to completing and filing your Self Assessment Tax return. And of course, you are free to accept or turn down contracts as you choose. Not that you will definitely be in a position to turn down work; nobody is denying that, especially now in uncertain economic times, this can be a precarious position to be in. This is where contractor umbrella companies come in.

Whether you work in the public or the commercial sector, or both, it is worth registering with an umbrella. You will need to get some paperwork out of the way first, as follows: you will definitely need to request application forms, fill them in and send them. It is probable that this can be done electronically – i.e. you will be able to download an editable PDF of the form, fill it in on the computer, and email it back with no paper involved – but in order to obtain the form in the first place you will have to register your email address with the umbrella. They will need to make sure of your eligibility to work in the UK before you can start sub contracting for them.

The process for your payments is as follows: you will need to log your hours as well as your hourly rates on a timesheet – again, in most cases this is nowadays done on an online interface on the contractor umbrella’s website – on a weekly, or monthly, basis. Then they will send an invoice to the client, who will be asked to approve it before paying the invoice. Then, upon receipt of payment, the appropriate amount of money will be paid to your bank account. With these payroll services you can fully expect to be paid on time every time: as a self employed contractor this may be something you are not used to! You will stay self employed and enjoy the associated freedoms and savings. Also, your payroll process will be compliant with HM Revenue & Customs cis payroll regulations.

Please visit http://www.liquidfriday.co.uk/ for further information about this topic.

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