There are many times in a person’s life when they will consider working for themselves rather than for an employer. There are a multitude of reasons for this such as redundancy, seeking a little more freedom in your working life or maybe you just don’t like answering to someone else. Deciding which jobs you do and when you work sounds like a dream for many of us but can become a reality.
Making the decision to work for yourself is a huge step and will require much consideration before quitting work. There are several possibilities for anyone who doesn’t want to be an employee. One option is to be a sole trader with responsibility for keeping your own accounts and records. If you decide to be a sole trader, registering with HM Revenue & Customs is required within three months of starting your business. You will complete a tax return each year which will result in a tax bill for your liability each year.
Some people decide to form a limited company, which has many advantages such as not being liable for any debts incurred by the business. A private limited company is responsible for its own finances and the shareholders’ personal finances will never be taken into consideration if anything should go wrong. However, many people are put off this option as they are overwhelmed with all the information.
An umbrella company enables you to contract out your services and will deduct the correct amount of tax and national insurance from your earnings. There are expenses which are approved by the HMRC and these are deducted by the umbrella company. This system allows you to take home the maximum amount possible without being self employed.
Here at Churchill Knight & Associates Ltd we can help you to maximise your take home pay by offering three different services. You can be assured that we will advise you how to achieve maximum pay whilst staying within HMRC legislation.