IR35 Solutions
There are two ways to solve IR35. One, you can use an off-shore solution. This is very high risk, as evidenced by the recent victory by HMRC in court regarding the BN66 legislation that, in simple terms, means thousands of contractors have millions of pounds of back tax and penalties to pay.
The second, and only practical solution is to set up and run through a UK limited company, sometimes called a personal service company.
So, can contractors really run their own business, or has it all become too difficult in recent years? We think it is still easy, if you ignore the people who try to blind you with unnecessary complexities. After all, you don't need to be a mechanic to drive a car.
Have PSCs become too complex for UK contractors?
As a freelance contractor, you are not a large PLC. You do not have complicated transactions. Your business is pretty simple – and you are the person who understands it best.
Thousands and thousands of UK contractors are running their own companies and you can do it too! With the right help and advice and a good computer system in place it really is achievable for almost all UK contractors to do it themselves.
There are a couple of groups that will not suit this solution. So long as you are not an overseas worker with a visa prohibiting starting a business, you are not an undischarged bankrupt or a prospective bankrupt and you have regular access to the web, this is the most cost-effective solution for running your own business.
Technology
Technology has moved on and with a secure web-based system in place, most contractors find it very quick and easy to run their own company. No fuss and no hassle and all the facts and figures at your finger tips 24-7. The days of vast confusing excel spreadsheets have long gone.
Credit crunch!
Why pay someone else to do the simple tasks that you can do yourself? It saves you money and you have the peace of mind that the information has been processed on time and without errors. Processing timesheets and invoices for UK contractors is very simple. With a little hand holding at first from experienced telephone support staff whilst using innovative web-based software you can quickly and easily process your own transactions.
Legislation
Undeniably the legislation surrounding contracting has become tighter. But that does not mean your business has to become any more complicated. So long as you are advised – via your web-based system working within the legislation – which is the best way for you to run your company you have the peace of mind that you have a totally compliant solution in place.
Boring accountants
General practice accountants have little idea how contractors want to run their own business. Don’t get dragged into costly and time-consuming meetings with accountants who grossly over-complicate your business. Messages can be confusing and frightening and it’s easy to believe that you need a high-priced financial guru. Stop here. You don’t.
If you want to avoid those awkward meetings at times when you would rather be charging billable time then this is the solution for you. The options for contractors have just got bigger, better and much more cost effective.
If you are keen to save time, money and want a flexible solution that you are in control of, running your own business is the only solution. Check out Orange & Gold for an easy and cost effective way to earn more from contracting