New to Contracting: Trading Options

<Prev Next>

Self Employed

These days few individuals have the option to trade in a self-employed capacity. There is a larger burden inherent in contracting self-employed workers as a result of  S.44 Income Tax (Earnings and Pensions Act 2003 formerly 'Income and Corporation Taxes Act 1988 (ICTA) s.134' ). This legislation puts responsibility on the recruitment agency to decide whether the nature of the engagement is that of employment or self-employment, and therefore whether PAYE should be deducted from payments to the individual worker.

Our rating for the Self Employed trading option reflects that;

• It shares many of the advantages of running your own limited company, albeit with reduced taxation and expense benefits
• Personal assets are not protected against liability - they are with a Limited Company.
• It is unlikely that agencies or end-clients would be willing to allow you to trade this way because of the potential tax risks to them

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...