With the paper filing deadline recently passed, and the online filing deadline of 31 January looming, here are 4 good reasons to ensure you file on time this year. Continue Reading

HMRC has announced that those who submit their 2010/2011 tax return late will face higher penalties than in previous years.

According to HMRC, the previous £100 penalty was not enough of a deterrent and new measures have been put in place to ensure timeous returns. A spokesperson said: “HMRC spends a lot of time pursuing late returns and getting involved in unnecessary appeals work. We want to focus our resources on more productive work such as catching criminals and collecting tax.” Continue Reading

Chairman of the National Outsourcing Association Martyn Hart said recently that more firms and sole traders operating in the modern business environment are choosing to outsource their payroll functions to companies who specialise in these services. Continue Reading

A targeted unpaid tax crackdown by HMRC has seen five plumbers arrested during raids in London, Hampshire, Surrey, Middlesex and West Bromwich. Continue Reading

IR35 legislation is once again in the spotlight after another tribunal hearing has ruled against HMRC in favour of the independent contractor, finding him to be “legitimate”. Continue Reading

“Independent Contractors in the UK should start looking to small and medium businesses for new contract opportunities,” says Pieter Carstens of 1st Contact Accounting.

“In contrast to large businesses, which have cut back on hiring fulltime or contract staff, SMEs are predicting job creation within their businesses, particularly for IT and engineering contractors.” Continue Reading

Are you the owner of a limited company or an independent contractor in the UK?

Using a professional accountant and accounting system for your business can hugely reduce your admin and stress, save you money and ensure you avoid any legal hassles. But how do you know if you’ve chosen the right accounting firm to deal with your particular needs? Continue Reading

The LVCR (Low Value Consignment Relief) tax avoidance loophole will finally be closed this year, putting an end to the multi-million pound Channel Islands industry and an unfathomably long run of exploitation by large online mail order companies, including Play.com, Amazon and HMV. Continue Reading

At those times when money is tight, it’s increasingly important to maximise your earnings.  With the announcement of large public sector cuts and the continued global slow-down of commerce and industry in general, it’s easy to paint a grim picture.  However, many savvy individuals are turning this to their advantage and reaping the benefits of contracting. Continue Reading

The AWR (Agency Workers Regulations) come into force on the 1^st of October this year – just a few months away and 1st Contact Umbrella is busy behind the scenes to ensure their clients benefit from the new regulations.

The principle of the AWR is to entitle temporary agency workers “equal treatment” with regards to basic employment and working conditions, if and when a 12-week qualifying period in a particular job is completed.
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If you’re an independent contractor or considering the switch to freelancing, an Umbrella Company might be the most sensible solution for you. Here’s a quick rundown of the benefits of working through a professional Umbrella Payroll Company.

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Tax Penalties are enforced by HMRC for various reasons and are more often than not the direct result of either procrastination or a lack of information.  Ensure you don’t cut into your annual take-home pay by having to fork our hundreds of Pounds for penalties which could have been avoided in the first place. Continue Reading

1^st Contact Umbrella often receives calls from people considering becoming contractors or who are in the process of weighing up the differences between starting a Limited Company and joining an Umbrella Company.

Here is a list of the most frequently asked questions about Umbrella Companies – answered by 1^st Contact Umbrella consultants. Continue Reading

The 2011 budget speech as expected held very few surprises, but did contain a few welcome changes, some of them of particular interest to independent contractors and those considering starting up a small business this year.

“Contracting through a Limited Company has steadily grown in popularity over the years and has become an even more attractive prospect for the 2011/2012 tax year, especially in light of the recent budget speech.” says Liam Collins of 1st Contact Accounting.

A few of the changes include the higher than expected reduction in corporation tax, as well as the additional relief for those investing in start-ups, under the Enterprise Allowance Scheme. The income tax threshold for investment will increase from 20% to 30% from the 6th of April – a measure which will further decrease the risk for investors.

Other measures include the decreasing corporation tax rates for small companies from 21% to 20%; a higher tax free allowance (increased by £1,000); and an increase in the mileage allowance from 40p to 45p.

Prime Minister David Cameron has been actively encouraging entrepreneurs to lead the way in the economic recovery by making changes that will allow the UK to become one of the easiest and cheapest places to run a company. Cameron recently said:

“We need to see a country where new businesses are starting up on every street, in every town; where entrepreneurs are everywhere.”

Plans are underway to expand the scope of the New Enterprise Allowance, which aims to create up to 40 000 new businesses by 2013.

For advice and information about setting up a Limited Company, visit www.1stcontact-accounting.com or call 0808 141 1624 and speak to a qualified and friendly consultant about your own business aspirations!

The annual Budget Speech was delivered by George Osborne on the 23rd of March, some of these changes will adversely affect Independent Contractors from the 6th April.

What to expect

• Employees’ NI contribution rises to 12% (from 11%)
• Personal Tax Free Allowance for income tax (PAYE) rises from £6475 to £7475

No matter how you look at it, the budget changes will have a 1% negative effect on your net take home pay.

How can 1st Contact Umbrella help?

As a contractor, you are able to mitigate the negative effects on your earnings by using a reliable Umbrella product, thereby increasing your net take home pay.

We have a suite of products from which to choose based on your unique situation.  Our qualified consultants are available for a free consultation and to give you the best possible advice on how to ensure your take home pay is the highest it can be, taking all recent tax-related changes into account.

Why 1st Contact Umbrella?

Since 1996, over 100 000 contractors have enjoyed:

• Free consultations with dedicated consultants
• A simple fee structure with no hidden costs
• Claiming for business expenses through our extensive expense policy
• All administration handled on their behalf
• Prompt and efficient payments processed daily
• Quick service
• Professional, Public and Employer’s Indemnity Insurance at no extra cost
• Full statutory employment right, including maternity, paternity, sick pay and holiday pay

Chancellor George Osborne’s budget speech yesterday was centred on his four economic visions, namely that Britain: Continue Reading

In his Budget statement on 24 March 2010, the then Labour Chancellor Alistair Darling, confirmed that The Employee National Insurance (EENI) contribution will increase by 1% from 11% to 12% for individuals earning between £7,225 and £42,475. Continue Reading

Do you have a pressing question you think our experts may be able to help with?

Submit your questions here and it may be featured in the next issue of 1st Contact eNews.

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HMRC has issued new rules for the correct tax coding for termination payments, to come into effect from 6 April 2011. Under the current rules, if a termination of employment payment is made to an employee after the P45 form has been issued to the employee and the payment in question is more than £30 000, any amount over £30 000 will be taxed. The taxation amount is 20% and the code “BR” (for basic rate). The employer is required to withhold 20% of the amount over £30 000, and the former employee is responsible for any further tax that may be payable. Continue Reading

A Tier 1 Tribunal has recently ruled in favour of independent contractor Mark Fitzpatrick, bringing to an end the seven-year dispute between Mr Fitzpatrick and HMRC. Continue Reading