If you want to continue to work as a self employed or freelance contractor, it is a good idea, if you have not done so already, liaising with a contractor umbrella company to make use of the payroll services offered by these companies. Not only will you get CIS payroll benefits (if you are in construction), but you will have a higher level of stability this way, which is especially valuable at the moment. Even in hard times it is still desirable to be self employed, provided that there is enough work available.

One reason for this is that self employed traders are often required to pay less in national insurance contributions to HM Revenue & Customs. Another is that by being self employed you can to offset your work-related expenditure against the income tax that you owe on your earnings. On top of that, of course, you have the final say over what contracts you take on, or decline to take on, which can be important, especially to freelancers with more than one profession: if times are good in a contractor’s main profession, he or she might reject contracts in his or her secondary profession until there is a lull in trade in the first. In other words, self employment is a fine way to attach new strings to your bow.

Freelancers and sole traders from a whole range of different industries make use of the services offered by contractor umbrella companies. Whether you work in logistics, construction, teaching, Information Technology Services, or even social care, making use of payroll services can increase your earning potential and save you money at the same time. In addition, it can simplify the complicated procedure of ensuring that you are CIS compliant, according to the rules and regulations of HM Revenue & Customs.

A contractor umbrella company can provide experienced freelance contractors to its clients at short notice, enabling these clients to temporarily boost their staff numbers in order to complete projects, without all of the associated hassles that they get with fixed term employees, such as sick pay, NI, maternity or paternity leave, and so on. In the construction industry, however, all payments made to sub contractors must be made in compliance with the Construction Industry Scheme regulations (cis payroll). Umbrella companies can provide payroll services to sole traders, pending a successful registration process, verifying, among other things, the sub contractor’s eligibility to work in the UK. They will have a system in place to process payments between themselves, their clients, and their sub contractors.

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



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