Have you ever been bombarded by companies promising you over 90% take home pay? Over the years we have all seen promoters offering exactly that, by using contractor loan schemes. Promoters reduce the amount of tax you pay on your income by artificially diverting income through a chain of companies, trusts or partnerships and pay the contractor in the form of a ‘loan’. The ‘loans’ are claimed to be non-taxable because they don’t form part of a contractor’s income. However, in reality the ‘loans’ aren’t repaid and the money is used by the contractor as if it were his or her income.
The Government announced drastic reforms to dividend tax in the summer budget; the changes will take effect from 6th April 2016. For most contractors, this means a significant dividend tax rise is coming. Our blog explains the changes that might affect you, and how you can stay one step ahead of the changes. Read on so you aren’t caught out.
You’ve decided that contracting appeals to you for your next career move; you will join the ever-growing independent professionals workforce of over 1.88 million. By choosing the limited company route, you open yourself up to the most tax efficient way to legally maximise your pay. Still thinking how to choose the right contractor accountant?
With our special ‘Refer a Contractor’ promotion you can be! Read on to find out more…
Increased earnings, greater choice and fantastic career development are just a few of the benefits of contacting. There are now more reasons than ever to join a growing network of contractors to make the most of these fantastic advantages.
Yesterday’s Emergency Budget delivered several important announcements that will affect self-employed workers in the UK. The Government states that it stands up for the flexible workforce and supports hardworking British people. However, it is disappointing to see that these steps are increasing the tax burden for contractors.
Today, George Osborne has delivered his post-election Budget; it is the first by a totally Conservative party since 1996. The Chancellor has outlined the Government’s long term fiscal plans, ambition for a budget surplus and additional important factors that could affect you as a contractor and your take home pay.
John Payne, Partner at Churchill Knight & Associates Ltd, has viewed the recent General Election results as great news for both contractors and recruiters.
Whichever party enters Downing Street on the morning of May 8th, changes will be made by the new government that will affect contract workers. For some, a Conservative government will mark a welcome continuation of the status quo. For others, the next five years need a fresh approach, with Labour hoping to step in and assume that role. And the Liberal Democrat’s will bring in new policies if they can overcome their dip in form.
With less than a month to go, many within the recruitment industry are eagerly awaiting the outcome of what promises to be one of the most hotly contested general elections in recent memory. At the time of writing, the latest polls put Labour slightly ahead of the Tories in the race for Number 10, but neither party looks likely to gain an overall majority.