More and more people are choosing to develop their careers as a contractor rather than as full-time (permanent) employees because of the potential financial advantages of working for themselves, plus the greater flexibility and ability to control their careers more easily.
However, moving from being a full-time permanent employee to a contractor places certain legal and financial obligations on contractors.
Initially, this involves deciding whether to operate your contracting business via what is called an umbrella company or via your own limited company. Like all things, there are pros and cons of both options.
Here at HML Davies Limited we can advise people thinking of moving from a permanent role to one of contractor on how to take most advantage of the tax planning opportunities of the two options.
As you start your business as a contractor (or freelancer or consultant, in fact), you will be faced with a whole host of new responsibilities including marketing and selling yourself and your services.
Therefore, a good, knowledgeable accountant with experience of dealing with the specific needs of contractors will mean that you can get on with looking for and completing contracts rather than worrying about complying with all the legal and financial requirements of HMRC - or facing fine and penalties if you forget or don’t get things right.