Contractors & Freelancers

Contractors & Freelancers

Either you are one of the experience contractors & freelancers or thinking to become one it is of prime importance to select the appropriate business structure to maximise tax efficiency.

Contractors & Freelancers

Depending on every individual’s circumstances one of the following four business structure may be more suitable than the others;

  • Self employed
  • Partnership
  • Umbrella company
  • Limited company

Although you are working as a freelancer/contractor but in HMRC’s opinion you may still be an employee of the company you working for therefore, you may end up paying significantly more tax and national insurance than you might have thought.

To determine your IR35 status it is best to seek expert advice and have your contract and working arrangements reviewed by an expert.

Does IR35 affect all contractors?

All contractors need to consider IR35 but not all of them are caught by IR35.  Determining whether you come under IR35 legislation depends on numerous factors.

IR35 applies if you carry out work through an “intermediary” (own limited companies or partnerships). The IR35 rules will affect all contractors who do not meet HMRC’s definition of ‘self employment’..

IR 35 Review:

In order to assess your status and advise on HMRC’s enquiry process we provide following services;

  • Detail analysis of the factors which may effect you as contractor/freelancer
  • Contract review service
  • Advice on Intermediaries Legislation (IR35) implications

In addition to the IR35 (above) construction industry subcontractors also require to adhere to CIS rules

The Construction Industry tax regulations and regime are only relevant where:

  • 1- Contractors
  • 2- Construction Operations (within s74 Finance Act 2004)
  • 3- Subcontractor: Self Employed, company or partnership
  • All 3 elements must be present, to come within the scheme.

It depends on registration subcontractor may get paid gross or net.

Registration Status Tax deduction
Gross 0%
Net 20%
None 30%

The purpose of the Construction Industry Scheme is to ensure that tax evasion is minimised in the construction industry.

Our Contractors & Freelancers clients includes;

  • Makeup Artists/Beauticians
  • Teachers and trainers
  • IT specialists
  • Locum doctors
  • Medical consultants
  • Management consultants
  • Builders
  • Uber drivers

For more details of the services we offer you can give us a call on 020 7278 0007 or book a FREE No Obligatory initial consultation with one of our qualified accountant.