As you know there are all sorts of rumours flying about at the moment in respect of the changes in legislation that HMRC are introducing and come into effect on 6th April 2016 that affect you being paid through an ‘Umbrella Company’.
The changes mean that if you are paid through an ‘Umbrella’ Company you will no longer be able to claim for any travel expenses, meal allowances or overnight accommodation from home to your temporary work place.
You can still be paid through an ‘Umbrella’ company you just won’t be able to claim your expenses against the tax and national insurance if you fall under the supervision, direction and control of the end client.
There is a solution whereby you might consider running your own limited company – many contractors operate in this way. Most contractors operating their own limited company will still be able to claim tax relief on the above expenses as your home address will be your man workplace. However, you will need to prove that you are outside IR35 for each role. In addition, operating through a limited company can result in less national insurance being paid.
Running a limited company means more responsibility and discipline on your part. The company will have to have its own bank account, and you will need to arrange a payment each week from the company to yourself. TUS Accountancy Services Ltd can advise you on how much income you can take from the company to pay yourself. We can inform you of how much you should set aside for tax.
It sounds unnerving and complicated to run your own company, it really isn’t if you let us help you, TUS Accountancy Services Ltd will nurture and educate you through the process in order to make contracting work for you.
As part of our ongoing commitment to you, TUS Accountancy Services Ltd will not charge you a setup fee for the formation of your Limited company and you will find our monthly fee very competitive. It is only £120.00 per month plus VAT.
I know that the good service we currently offer you through Total Umbrella Services Ltd will continue through to the services we offer through TUS Accountancy Services Ltd let us help you through this change you will not be disappointed.
Contact us to discuss your particular situation and decide on the best way forward:
Tel: 01462 429779