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

Independent Contractors enjoy the luxury of working for themselves and depending on their contracts, are sometimes able to set their own fees, working hours holidays and conditions. But the independent lifestyle does come with some responsibilities and risks which, if not managed properly, could lead to serious legal and financial issues.

In this article, we look at the importance of medical insurance and offer advice for partnering with the right insurer from the start.

Why Private Medical Insurance?

As a contractor you have the opportunity to increase your earning capacity. The downside to this is that when you are hurt or ill, your earning grinds to a halt – every day that you aren’t working is a day’s income lost to you.

Instead of enduring costly delays caused by NHS waiting lists, rather look to a reliable, quality private medical insurance company. An affordable monthly fee will allow you to leapfrog waiting lists, ensuring that you receive the very best, most comfortable treatment and get back to work with the least amount of delay possible – essentially saving you money in the long run.

How to Choose Your Insurer

It’s vital that you find the right insurer from the start so that you avoid any future problems. Choose a reputable company with a longstanding record and offering the most benefits to you.

Look out for the following:

• Has the company been in business for more than 10 years?
• Is it a not-for-profit company? This usually means the emphasis is on keeping customers happy – not shareholders.
• Is treatment limited to a handful of Doctors and hospitals or can you be treated where you want to be treated?
• Is there a compulsory excess charge?
• Is there a maximum annual cover limit?
• Is there a maximum age limit?
• Are there penalties for claiming?

Asking all the right questions upfront will ensure that you are not disappointed when the time comes to take advantage of your cover.

1st Contact’s Choice in Private Medical Insurance

1st Contact has team up with Western Provident Association (WPA), a leading not-for-profit UK Health Insurer, to offer preferential rates and excellent service to its contractors.

WPA offers a full range of both Private Medical Insurance and Cash and Dental plan policies, ranging from the basic ‘Essentials’  offering to ‘Premier’ and ‘Elite’ plans.

Their heritage spans more than 100 years and they have a solid reputation for reliable and highly efficient service. Some of the many benefits include 24/7 online claims processing, no penalties for claiming; no age limit, no annual cover limit and no compulsory excess. WPA insurance covers all UK hospitals and consultants and pay them directly, on your behalf. Another great benefit is that WPA normally give a 20% discount, but as a 1st Contact contractor you could enjoy an additional 10% discount and save even further.

Don’t Delay – Secure Your Income

A small monthly outlay could make a huge difference later on down the line. So don’t delay this essential insurance for independent contractors.

Visit http://www.1stcontact.com/financial-services/private-medical-insurance.aspx or call 020 3384 3805 for more information or medical insurance advice.

by Nikki van Coller

So you feel like you’re stuck in a dead end job and you’d rather nibble the varnish off your entire dining room table than spend another year doing what you’re doing? You’re not alone!

Millions feel the way you do and a percentage of them will manage to escape their dreary existence and find a job or career opportunity that truly fulfils them.

1^st Contact Job Assistance suggests these 7 steps if you too want to be fulfilled and get the job you really want.

1. Develop the Right Attitude

The first step is to choose to be fully committed to the task of getting yourself out of the rut you’re in and creating the future you want and deserve. The right attitude from the start means you are willing to do the work required – the research, planning and execution…. It means being completely truthful and dedicated. It means being prepared to endure the ups and downs that go along with making a drastic change. It won’t be easy, but if this is something you really want to do, why wait another year?

2. Get to Know You

The second step is to get to know yourself better, so that you understand exactly what it is you’re looking for. Until you know what you really want, you can’t ask for it, and you can’t take the steps needed to get it.

There are a number of questions you can ask yourself. Really dig deep and take some time with this one. This is a process and going through the process could lead to a single epiphany or weeks of further unravelling to discover your true ambition.

a. What Are You Good At?

Make a list of everything you are or have ever been good at – the things you do well in your current job, as well as the things you do well in your everyday life. What do friends ask you for help with? How do you express your creativity and imagination in your home, garden, kitchen or social circle? Once you get going, you might be surprised at how long the list actually becomes. Next, make a list of the industries you’ve been involved in; and the functions you’ve performed in each job. You know have a good idea of what you have to offer.

b. What do you enjoy?

What are the things that make you truly happy? Figure out the situations, activities or people that bring you joy or have brought you joy in the past. Ask yourself: “What would I be doing in an ideal world?”… “If I could have anybody’s job, whose job would I want?” … “If I could go back and start my career again, what would I do?”… “What am I passionate about?”… By answering these questions, you are finding your bliss.

c. What do you NOT want?

Now that you’ve spent some time uncovering a bit more about what you’re good at, what you’ve done and what you actually enjoy doing, make a list of what you don’t want. If working in a big corporation goes against every fibre of your being, acknowledge it. By doing so, you are saying “no” to that particular situation and inviting different situations in instead.

d. What DO you want?

You might be very clear about what you want. If you’re still trying to figure it out, the exercises above might’ve helped bring you a little step closer. Be open to signs and notice your own reactions to different stimuli. By being aware every day of the process you’re going through, you are inviting opportunities into your life. By understanding who you are and what you aspire to, you are inviting the right opportunities.

You should now start to form images in your mind of plenty of possible scenarios for you, where what you have to offer is aligned to your bliss! Jot these down somewhere visible and don’t censor or judge your list – it’s just a list!

Examples:

Let’s say you’ve been a PA to a Financial Director for as long as can remember and you are about as bored and uninspired as a person can be… and let’s say music is one of your biggest passions – you could for instance work as a PA at a music label or put your organisational skills to good use by joining an Events Company.

Or let’s say you’re a nurse and you love helping people, but you hate the hours and you’d really like to earn more money… and let’s say your biggest passion, the thing you love the most – is anything to do with movies and the movie business… you could for instance become an independent consultant and get paid really good money to advise and consult with writers of medical movies and TV programmes.

Every single problem has a solution and in most cases, many possible solutions! Flood your mind with possibilities and write each one down without judging it or dismissing it for being too big or seemingly unrealistic. Your reaction to different ideas might change from day to day –notice how your mind and your body react and make mental notes of what you are most drawn towards.

3. Do your homework

Once you have a few real ideas about the kind of job you could be doing, do some investigation into the feasibility of the main contenders. Check job boards; visit forums where people doing the job you want, are chatting about the things that interest you; speak to friends and family and people whose opinions you respect. Don’t make assumptions and don’t judge anything yet… Just look, listen and learn. The more knowledge you gather, the better you are equipping yourself to make a decision.

4. Be Alert

At the same time, be alert to signs and opportunities. Notice which visions become clearer and which fade. Be aware of what’s going on both around you and within you. Which people are suddenly finding their way back into your life; which words are you hearing more often; how else are things shifting and in which direction…? Stay open to all possibilities. And if you start to feel demotivated, refer back to step 1!

5. Take action

If you have followed all the steps outlined above and signs are flying in fast and furiously, there will come a time when an action or series of actions is required on your part. This might involve saying yes to a social engagement because someone influential in your dream industry is going to be there; or sending a killer email off for a position you see advertised, even though it’s the day after the closing date – just in case something comes of it.

If the signs are there and you recognise that you have a window of opportunity and everything about it feels right, do what needs to be done to make it happen. Start by using all the information you’ve acquired during this process and have your CV updated to be the [best CV you can put out there!] (Link to 1C Job Assist) Ask questions, make phone calls, read, explore, act!

If you put your honest intention and energy into this process, things will start to happen and every positive step you take will cause effects that put you further along the path you should be on.

Keep in mind:

Timing is key –

When the Universe hands you an opportunity, you have the choice to grab it and go for it; or let fear and hesitation and procrastination hold you back. In the case of the latter, your window of opportunity will eventually close and a new plan will have to be conspired for you and delivered at a later stage.

Follow your instincts –

If it feels right, it’s right. If something tells you it’s wrong, it’s most likely not right for you. Be present and honest and your instincts will reveal themselves more clearly.

Don’t let setbacks get you down –

Even once you know what you want and all the signs are pointing in that direction, things won’t always go according to plan. But if you are in your truth and your instincts are telling you you’re on the right path, then don’t let obstacles stop you.

By this time next year, you could be in your dream job, living a life that makes you far happier than you are now. Today could be the day you set a plan in motion that makes you able to shout out “I love my job!”

1^st Contact Job Assistance would love to help you realise your goals with professional CV assistance, applying to the right jobs on your behalf and all sorts of career advice. Visit http://www.1stcontact.jobs or call 0844 880 1816.

Thinking of relocating?

Visit www.1stcontactvisas.com for visa and immigration services and advice.

Independent Contractor? Get your ducks in a row for the coming year and allow your business to thrive! Whether you’re new to contracting or have a long and lucrative career behind you already, it always pays to ensure you are on top of your game. Deon Smit, Payroll Manager at 1^st Contact Umbrella, highlights 4 areas which – if managed properly – can greatly improve your chances of success as an independent contractor. Continue Reading