The new tax year is upon us, meaning now is the perfect time to make some changes if you’re a contractor.
But forget giving up chocolate, cutting down on alcohol or getting fit, we’re talking tax resolutions.
Here we suggest three promises that every contractor should try to keep in the 2018-19 tax year, which started on Friday (6 April 2018).
New tax year, new you
Choose the right contracting solution for you
Probably the most important thing to get right when working as a contractor is choosing the right solution, whether that’s becoming an umbrella company employee, setting up your own limited company or working as a self-employed subcontractor.
The best route for you will depend on a range of factors, from your assignment rate to the sector you’re working in and the length of your assignment.
Contact ADVANCE today for advice on this.
Stay on the right side of the taxman
Unfortunately, when working as a contractor it’s possible to unwittingly fall victim to tax avoidance schemes that promise the earth but land you in trouble with HMRC further down the line.
One example of this is the contractor loan scheme that attracted the attention of HMRC and the Advertising Standards Authority (ASA) earlier this year.
Locum nurses were warned back in February to avoid unlawful loan-based umbrella schemes, following reports of an increase in the use of non-compliant solutions in the public sector.
Spotting a non-compliant provider can be tricky in an unregulated market, but a good place to start is checking if the company is accredited by the Freelancer & Contractor Services Association (FCSA).
FCSA accredited member status is considered the gold standard of compliance in the contractor services sector, as we explain in this blog post.
Make sure your provider is working hard for you
Your contractor accountant or umbrella company should be giving you pro-active advice on how to maximise your tax efficiency in a compliant and legitimate way.
If they aren’t, then why not?! If you aren’t getting the service and support that you need, then now is as good a time as any to research alternative providers and consider switching.
Find out more
For more information on any of the above points, call our New Business team on 01244 564 564 or complete the below form and we’ll be in touch.
ADVANCE is the only provider with FCSA accreditation for umbrella, limited company and self-employment / CIS solutions.
Because we offer all three options, we will be able to give you honest, impartial advice on the correct route for you in the new tax year.