New to Contracting: Trading Options

<Prev Next>

Trading Options

One of the benefits you bring to your client as a contractor is that you manage your own tax, payroll, and accounting affairs, relieving them of the legislative burden and employment headaches. You will invoice for your services instead of receiving a salary and in order to do this you need to adopt a recognised trading method.

There are three main trading options open to you; your own Company (sometimes referred to as a Personal Service Company), PAYE employee, Umbrella company employee of the end client or agency, and a fourth little-used option - Self Employed - that we have included for completeness. These are shown in the diagram below.

 

Trading Options

On the right side of each page you will find the 1st Option star rating system; this will give you an idea of the benefits and weaknesses of each trading option. While this is useful background information, if you intend to contract seriously, only one of these options makes long-term sense. Running your own Limited Company provides a host of benefits compared to any other trading option, and will increase your personal wealth in virtually all circumstances.

 

Next>

1. New to contracting
2. Benefits
3. Trading Options
4. - Your Own Company
5. - PAYE Employee
6. - Umbrella Employee
7. - Self Employed
8. - Summary
9. Running Your Company
10. - Getting money in
11. - Expenses
12. - Payroll
13. - Bookkeeping
14. Costs
15. Next steps
16.  

Help & Advice

• Call: 0800 089 0110
• Enquiry Form...
• Email Helpdesk...