News, insights and advice for contractors.
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Whether you are contracting through your own limited company or working through our umbrella company, working for yourself can be incredibly rewarding. It can help you do what you’re passionate about and gives you more freedom. However, that does not mean it goes without its challenges.
These 10 tips will help you find balance, manage financially and look after yourself whilst you get started.
1) Budget your costs and know what expenses you can claim
You’re likely to incur some costs when you’re starting out. Keeping these costs low boosts your chances of success, so make sure you budget effectively. It is also important to know what expenses you can claim.2) Keep tax records
If you are a sole trader or limited company contractor, it’s vital you keep good tax records. This will make life much easier during tax season.3) Set tax money aside
If you earn less than £50,000 then saving a third of your income should be more than enough to cover Income Tax and National Insurance Contributions.4) Think about VAT
If you’re a limited company contractor then you’ll have to register for and begin charging VAT if you turnover more than £85,000 in a 12-month period. If you’re a contractor for our umbrella company, this does not apply as we will sort the VAT out for you.5) Keep business and personal finances separate
Opening up a separate bank account for your business can make it easier to manage your money. This is essential if you’re a limited company contractor.6) Get clued up on IR35
If you want to work as a limited company contractor, you need to make sure you understand the off-payroll working (IR35) rules. If you’re working for our umbrella company, you won’t need to worry about this.7) Ensuring safety
When you’re discussing new contracts, ensuring your safety is the most important thing, especially when working for an umbrella company. When working for us, you can guarantee your safety. Compliance is key which is why our team of contracting experts are well-versed in all contractual obligations, laws and regulations, providing complete peace of mind for our contractors.8) Employment rights and umbrella rewards
One of the advantages to working through an umbrella company is that you get certain employment rights guaranteed. When working with us, you get all the employment rights you deserve. Also, being part of an umbrella scheme often gives you access to certain rewards. Our employee benefits package is available to anyone working with NWM and is continuously improving to include access to health and fitness advice as well as money-saving discounts at major high street retailers.9) Look after your mental health and wellbeing
Working for yourself can be mentally draining. Doing small things like taking more exercise, spending time outside and connecting with friends and family can help look after your wellbeing.10) Get professional finance advice
Whether it’s from a 2020 accountant or a member of our umbrella company, make sure you’re getting professional advice that you can trust.To conclude, it can be a challenge to be a contractor but by following these tips, you can help reduce stress and alleviate certain problems. If you’re still in need of professional advice, contact one of our highly experienced team members today > https://nwm.uk.com/contact-us
