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Have you considered other payment options?

Posted by Ifan | Posted in Blog, Contractor, News | Posted on 11-11-2012

As a freelancer the way you are paid should be determined by the nature of the work carried out.

A freelancer might be one of the following:

- short term employee of a client or an agency
- employee of an ‘umbrella’ company
- self-employed individual
- director and shareholder of a limited company (also known as a personal service company or PSC
Advantage and disadvantages of each option

Umbrella
An umbrella company, in addition to the agency PAYE legal provisions regarding salary etc, also allows you to claim bona fide expenses, which means more pay in your pocket. You have no admin, no commitment, no hassle and no limited company statutory or legislative worries and responsibilities.

Self-Employment
A self-employed individual is usually paid gross, unless working on a construction project, and simply needs to keep a record of their business related income and expenditure and submit accounts once a year to HM Inland Revenue with their self-assessment.
All agencies and some clients may not agree to contract on a self-employed basis.

Limited Company (PSC)
Setting up a limited company should not be a short-term proposition, as it requires genuine commitment. Managed properly, running your own company has a number of advantages: being in control of your own business, the freedom this brings and the ability to optimise your income.

With all this in mind, you need to make sure your decision to freelance is primarily a lifestyle choice.
Don’t be influenced by employment and tax laws as they undoubtedly change.

We will guide you through the legislation and compliance procedures and any changes to them, and you can be confident that you are receiving the best accountancy support and working as safely as possible.
Our accountancy, tax advice and support services remove as much of the administrative burden as is appropriate and provide guidance, to ensure you meet your responsibilities.

You can call us to discuss any questions you may have about our services, or if you need help in assessing other accountancy and support services you have come across.

Once you have made your mind up, getting started is extremely easy.

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