We provide UK tax and payment solutions for contractors and freelance workers. All you have to do is send in your timesheets and expenses.
"I got offered a lucrative long term UK contract but wasn't sure about my tax situation. A friend pointed me to Contractor Taxation. They helped me understand my options and gave some advice based on my circumstances. I picked a structure that suited me perfectly and it was all sorted out in days!" Toby R, SAP Consultant.
We can guide you through UK Loan Schemes, Employee Benefit Trusts (EBT), Partner Benefit Trusts (PGT) and all major tax schemes UK for contractors.
There are thousands of umbrella companies in the UK that offer tax solutions for contractors. With some you'll get 83% of gross billing. That means if you are earning GBP50 an hour these guys will pay you GBP41.50 in your pocket free and clear.
What's the catch?
If you choose the wrong company you might get in trouble with the taxman.
Read on to learn how to pick an umbrella company and the special extra protection you'll get from the best contractor management companies. Hint... if a company doesn't have this protection then they aren't the best umbrella company.
There are thousands in the UK all claiming you will pay less tax by using their special *insert tax scheme here*. It might be off the shelf limited companies or personal service companies or offshore payments or EBT's or PBT's or pension schemes or loan schemes or... are you confused yet?
Choosing the right specialist in contractor payroll could save (or COST) you thousands of pounds a year. If you choose a bad umbrella company you may get investigated... or they might even go bankrupt owing you money.
Do you know the two most common ways that contractors choose an umbrella company?
Um... the contractor next to you and your recruitment agent aren't experts. They just want to get a referral fee from the management company!
*Disclosure: We get referral fees from management companies too, but we are experts!*
Everyone knows the basic questions to ask of an umbrella company: how long have you been in operation, what administration do I have to do, how many contractors do you have, am I an IR-35 contractor, can I income split with my spouse, am I a personal services contractor, is your company a composite company, etc.
Don't forget the special extra protection that only the best umbrella companies have. The same industrial strength protection enjoyed by big corporates and the mega rich that we found out from companies who go the extra mile to protect their customers.
What is it? All the schemes from our recommended umbrella companies have already been REVIEWED and APPROVED by the Inland Revenue. So if the tax man ever wants to ask any questions you can show them the document where they already approved how you are getting paid.
This is pretty cool but to be really safe you should know you've got the big guns on your side. Some of our partners have had a QC review their structure and give a judgement on it. Tax QC's charge thousands of pounds an hour to give these opinions and they are worth their weight in gold. In fact they are probably worth more than that!
Just the mention of a Tax QC sends a tax inspector running. These guys are in court every day defending millionaires. Consider it your extra line of defence against the tax man!
"...if anybody in this country doesn't minimise their tax, they want their heads read." Kerry Packer
"Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes." Judge Learned Hand
"Every man is entitled if he can to order his affairs so as that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure this result, then, however unappreciative the Commissioners of Inland Revenue or his fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax." Baron Tomlin
Our advice for contractors is to review several options and make sure the company you choose understands your circumstances. There are thousands of contractor umbrella companies and most have specific areas of specialisation such as off the shelf limited companies, EBTs, Loan Schemes or PBT. We help you understand the best match for you and introduce you to established, reliable and compliant operators. Ask us for your Contractor Taxation Advice.