CIS Tax return
With April upon us, it’s time to prepare your CIS self-assessment tax return. The self-assessment will show money earned, along
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New Year, New Changes
New Year, New Changes The New Year welcomes changes both personal and professional for workers and clients in all industries.
IR 35
More and more temporary workers are finding themselves inside IR35 – meaning that contracting through a personal service company (PSC) is no longer financially beneficial. As a result, many are deciding to use umbrella companies for their payroll as its deemed an easier way to get paid.
What is IR 35?
IR35 legislation was introduced to stop ‘disguised employees’ taking advantage of tax breaks. It was found that many contractors working through a LTD were operating the same as if they were a permanent employee meaning they could pay themselves both a salary and dividends.
Inside or Outside?
Inside
You are working the same way as a permanent employee and your fee payer is making deductions for you (you receive your net salary).
Outside
You are genuinely self-employed and receive your gross pay from the end client.
As of April 2017 limited company contractors are no longer allowed to determine their own IR35 status.
If your still unsure which one you fall into, give our IR35 questionnaire a go
F&Q
Net Pay Calculator
The umbrella calculator is based on several assumptions:
- Holiday Pay Advanced
- No Pension Contributions
- A Margin of £15/Week
- No Expenses Claimed
- Working 46.4 Weeks per Year
- Tax Code 1257L