Just Started Contracting?

It can be overwhelming trying to decide how you want to organise your finances and get paid as a contractor or a freelancer, especially as we approach April 2021.

Any quick search for “contractor payroll” will bring up hundreds of companies all offering various solutions to how to get the most out of your money.

Over the years these have included Managed Service CompaniesEmployee Benefit TrustsOffshore Trusts and various other solutions that have later been investigated by HMRC and proven costly for the contractor.

In a Nutshell…

Umbrella Companies have been around for a long time and have always been popular with contractors, but since 2007 the interest in Umbrella Companies has rocketed. That’s because from 2007 onwards Umbrella Companies were seen as different from composite structures and single person companies and new legislation affirmed their compliance.

Umbrella Companies work within PAYE and the contractor pays PAYE and NIC’s the same as any other employee. They also have the added advantage of requiring no paperwork whatsoever (save for a solitary timesheet at the end of the week or month) so the contractor does not, therefore, have to deal with accountants, the taxman or even customers who haven’t paid their invoices. Everything is handled on their behalf by the Umbrella Company.

IR35 or
Intermediaries Legislation or
Off-Payroll Rules

In April 2021 (previously meant to be 2020) HMRC will have widened the scope of IR35 to include the whole Private Sector bringing it in line with the Public Sector rules introduced some years earlier.

Up until now you have always been able to decide the status of the roles you undertake. That will change from April next year and will now be determined by the end-user client. If someone in the supply chain gets it wrong, the liability rests with them and this has, regrettably, forced many end-user clients to blanket assess roles inside of IR35 without really doing the proper checks.

You can contest a status determination if your CEST (check employment status for tax) result confirms you are inside of IR35.  HMRC have said they will honour those findings, providing you have been honest and accurate in the answers you give.  But, don’t forget, IR35 status reflects the role you have undertaken, not you the contractor.

Making Life Easier

Contracting can be a lot more rewarding when you are free to spend all of your time either working or finding new contracts. Not only does CCA offer you some of the lowest fees on the market, we also allow you to start enjoying your working day once again.

By giving you employee status and the security and rights of an employment contract we don’t just give you an easy way to process your timesheet and offer you statutory benefits such as sick leave, holiday pay and maternity leave, you also get free insurance (public, professional and employment). A backroom team will support you in everything “payroll and HMRC”.

Start Benefiting Straight Away

Once you decide to make the change, we can have your Umbrella Company status up and running straight away. It only takes a few minutes and it’s free to do (and it’s just as free and easy to leave as well, though you probably won’t want to!) And, once done, we’ll start working right away in the background, ensuring you’re retaining the highest levels of your own income as well as making sure you’re utilising your expenses claims properly. We’ll also chase down any money owed to you and we’ll sort your PAYE and NIC for you. Best of all we guarantee that you’ll get your money the same day as we do, without exception – or you don’t pay a fee.

Made an offer of ridiculous retentions? Tell us and let our experts check them out!

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