From April 2017, new IR35 rules will apply to contractors who work on government contracts through their own limited company. The new rules will see the responsibility of paying the correct tax move from the contractor and their limited company to an intermediary or entity “closest” to the contractor – be that a recruitment agency, accountancy service provider or the government department itself.
The post-Brexit picture for jobs remains hazy, with various reports and announcements containing a mixture of good and bad news.
No one need to tell us here at Pulse that contractors are hugely important to businesses and the economy. Not only is our founder a former contractor, but we have conversations with contractors every day and discuss the important projects and significant responsibility they’ve taken on.
As a contractor, one of the ways you can benefit from using a limited company is through claiming for expenses. This is because expenses are not taxed.
For those working inside IR35, you can claim a flat rate of five per cent of your contract income, pension contributions and certain professional subscriptions.
For those outside IR35 there are additional expenses you can claim for. But the overriding thing to bear in mind is that the expenses need to be wholly, exclusively and necessarily for business purposes. You also need to keep receipts for them for up to six years in case HMRC investigates you.
Research from job site CV-Library suggests there will be a surge in people looking for new jobs this month, with over half of workers (57.1 per cent) saying they are more likely to consider a new job as the summer comes to an end.
While looking for a new job is more unusual for a permie, seasoned contractors are naturally far more used to it. But there are always ways to improve and streamline the process. So take a look at our top tips for contractors searching for new roles below.
Our people powering Pulse slot introduces our team
Contracting is our thing here at Pulse, which is why we recently took a look at the different types of contractors and what it was that attracted them and kept them in contracting life.
However, in the interests of balance, we thought we should also cover the different types of permies.
We live and breathe contracting here at Pulse. This passion is why we recently took a look at some of the great benefits contractors enjoy, including greater freedom, more job variety and better pay. And it’s why we also noted, when describing the different types of contractors, that there are major positives that attract people to contracting life and keep them there.
One of the many new things you’ll need to get the hang of as a contractor is getting invoices out to your clients. No invoice means no payment – so you could say they’re pretty important!