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Limited company and umbrella services for new contractors
If you have recently decided to go freelance or have turned to contracting after losing a permanent job, you may find all the paperwork and tax regulations a little daunting.
While contractors you know may well have told you all about the financial benefits of going it alone and the freedom to accept or reject assignments as you see fit, they probably neglected to mention the downside – the associated administration.
Here at PayStream we offer services that can help to make the transition to becoming a new contractor hassle free, by advising on the accounting side of things and ensuring you comply with all the relevant legislation.
Limited companies for new contractors
Forming a limited company has been common practice among contractors for many years, and providing that you meet the necessary legislative requirements, it has a number of benefits.
There are a number of tax benefits associated with running a limited company, meaning you can expect greater net pay than if you operated on a PAYE basis.
All this sounds great, but you should also be aware that there are certain legal responsibilities that come with running a personal service company like this.
Use PayStream's My PSC service and our experienced team of accountants will make the whole process much simpler.
We will guide you through setting up the limited company and then assist you in handling all accountancy-related issues, such as VAT returns, tax returns and reports that must be filed with Companies House.
And perhaps most importantly of all, our expert team will provide you with IR35 guidance to help you avoid falling foul of the legislation.
Umbrella companies for new contractors
Many people who are new to contracting or only planning to work on that basis for a few months prefer to use an umbrella service instead of setting up a limited company.
Using PayStream's My Max service will also allow you to maximise your take home pay, without the need to set up a business of your own.
The umbrella company will employ you meaning that you will receive full statutory employment rights. You will be paid on a PAYE basis, so will not be faced with any nasty tax bills from HM Revenue & Customs.
It also means you do not have to worry about things like invoicing the agency or chasing payment. All that will be handled by PayStream.
Although tax and national insurance is deducted at source, we will ensure you are paid in the most tax-efficient way possible, including claiming allowable business expenses and offsetting them against your income.
In addition to helping you maximise your take home pay, using the My Max service will keep your paperwork to a minimum, as you won't need to complete company tax and VAT returns.
Why should new contractors choose PayStream?
We have more than 30 years of experience in providing accounting and payroll services to contractors and freelance workers.
Whether you choose the umbrella service or limited company route, we offer a high-level of customer service, including a dedicated account manager to look after your affairs.
For more information on PayStream's services get in touch via our website or call us on 0800 197 6516 for a free, no-obligation quote.
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