We serve finance with our articles on credit cards, loans, debt and savings

IR35 Advice for Freelancers in the UK

Admin POK — Tue, 20 Mar 2012 20:54:48 +0000

If you’re self employed or about to go freelance, there’s one thing you need to be wary of and that’s the dreaded IR35. However, there are a number of benefits to being inside the IR35. Here we offer essential advice on the IR35 for freelancers in the UK.

IR35 is an abbreviation of ‘Intermediaries Legislation 35’ and the intention of this legislation is to prevent people from forming their own companies and disguising themselves as employees while reaping all the benefits of owning a limited company.

So if you’re currently employed full-time while doing work on the side and claiming expenses as though you were a limited company, then you could easily get into trouble –and not just with the tax man, but with the IR35 as well.

Do you fall inside the IR35?
To make sure that you do not fall inside the IR35 you must clearly demonstrate and document that you are a ‘self employed contractor’. If you’re unsure how to do this, it could be worth speaking to a specialist contractor accountant to simplify things and offer more detailed IR35 advice.

Put simply, if you can demonstrate that you have full control of your own company, use your own equipment in most instances, have the right of dismissal and are not entitled to employee benefits, then you should find yourself safely outside of the IR35.

By accepting the rules of IR35 you are allowing yourself to be open to financial risks and understand that you are the key person of your company who makes the decisions. However if you don’t tick all the boxes, you will be finding yourself inside of IR35 and will be required to pay far more tax as a result.

So it’s important that you accurately manage your accounts, not just for claiming expenses, but also to demonstrate that you should not pay extra tax for any additional income.

What happens if you are inside the IR35?
If you are found to be inside the terms of IR35, then it may be worthwhile creating a limited company even if the work is only a part-time pursuit in addition to your regular employment.

While you will still be required to pay more tax on any additional earnings, you will still be able to claim travelling and accommodation expenses. You can even claim on 5% of your turnover and also be affected by the Flat Rate VAT scheme.

To sum up, IR35 can be simple if you’re honest about your earnings. And there are still benefits to be had which could offset any tax increases if you should find yourself within the terms of Intermediaries Legislation 35.

My Contract and IR35

Admin POK — Wed, 15 Feb 2012 11:27:53 +0000

The specifics of IR35 with all the regulations and pieces of policy can be complex at times. Just remember if you are really struggling, or even not, finding a contractor accountant to help you look over your contract and give advice on IR35 is highly recommended. If your contract passes, it means you are officially outside IR35 legislation.

IR35 Guidelines

Here is a brief guideline as to what specificities HMRC could look for in your contract when trying to check your IR35 status.

Control – Make sure you are under your own control, not in the clutch of any client.
Who can Perform your Task? – You need to state that, in the case of you not being able to do a task you were not hired for, who should be contracted for completing the task? You cannot perform a task you were not hired for.
Financial Risk – You must, the contractor, must be under some sort of financial risk. This is to say, that a permanent employee as a rule not at any financial risk with his or her job. So, if a client fails to pay you as a contractor, you are at risk to lose money – reducing the chance of HMRC finding you inside IR35.
Dismissal Period – This depends on whether you have a set notice period, say of a month, for HMRC consider this the same as a permanent employee. As a contractor you should have immediate termination in place so the client can decide on that if needs be.
Company Benefits - As a contractor you should not be benefiting from any of the benefits which a company permanent employee might receive if you want to stay outside IR35.
Company Equipment – Will you use your own equipment? Some clients will not allow personal laptops due to security measures, but some will allow it – making this side a little patchy and grey.

The above should only be taken as a simple guideline as to why your contract is challenged if it has – however if you have any concerns about IR35, getting hold of a specialist contractor account for a a free verbal IR35 contract review is a great idea.

Making the Move from Umbrella to Limited

Admin POK — Mon, 06 Feb 2012 17:27:11 +0000

When you are a contractor functioning from within a limited company wanting to make the move to a limited company, it can feel a little overwhelming at first. One thing that could help you are dedicated contractor accountants. A contractor accountant will inform you that contracting through your own limited company is actually a much more efficient way of working.

Umbrella Company

If you are working from within an umbrella company you may be used to having your administrative work done for you. However, if you were to have talked to any contractor accountant they would tell you that it can take as little as 20 minutes of administrative work a month – resulting in more take home pay. 60%-65% of your contract is what take home pay you will receive when working in an umbrella company. 75%-80%, and in some cases more, is what you will take home when working through your own limited company.

When you contract through your own limited company you will reap the rewards. These come in the form of the Governmental ‘Flat Rate VAT’ scheme – which can literally boost your income by thousands a year which is done by claiming a wider range of expenses giving you complete control of your financial affairs. Any third party involvement is removed in this process.

It would be advisable to appoint an experienced contractor accountant which will give you well-needed support throughout your financial year, feeding you advice and tips along the way and answering any burning questions you may have. Find a contractor accountant who offers a fixed monthly package, ergo no hidden extra charges when trying to reach your accountant. Find out exactly what you’re getting in your fixed fee accountancy package; look at the breakdown to see entirely what you’re receiving for your pennies each month.

Steps to Limited

Moving from umbrella to limited is easier than you think. All you need to do is tell your umbrella company that you no longer need their services in your career, and then begin to set up your own limited company yourself. First off, find a name for your company (but make sure it hasn’t been taken first! – check with your contractor accountant), and then fill in the required forms. Most of the time your company will be up and ready to run in the same day you set it up.

After that, a company bank account needs to be set up by you – for as soon as it is, you can start earning money. All the income you make through your own limited company must go through your business account.

Good luck with the move!

Best Credit Card Deals You Can Get

Admin JHS — Mon, 06 Feb 2012 10:56:53 +0000

Best credit card deals – Introduction

You can get credit cards with great interest rates, awesome reward programs, low fees for balanced transfers, specialty cards, cards for those with bad credit, credit cards with low annual percentage rate and so on. Depending on the type of credit card you choose, the deal that financial institutions will offer you might vary. These deals differ as time passes by, because the value of the currency fluctuates.

Citi offers its Platinum Select Master Card with a 0% APR on purchases for twelve months and 0% APR for the first 21 months for balance transfers. Depending on your credit score, you will end up paying from 11.99% to 19.99% APR once the offer is over. Your APR will be based on the Prime Rate. You will also enjoy discounts on merchandise, travel and more. You can even manage your account online without any extra fees with their Identity Theft Solution. Visa offers its Chase Freedom. With this credit card, you can get up to £100 cash back when you purchase items up to £799 in value in the first three months after you get the card. You will also enjoy 4% cash back in the following categories: department stores, gas and home improvement.

This is a cash back quarterly bonus. You can apply for this credit card easily online. It also offers 1% cash back for all your purchases. As you can see, the Chase Freedom of Visa is one of the best credit cards you can get. You can even get 20% cash back on line purchases at select merchants. The Platinum Prestige Card of Capital One offers you a £0 Fraud Liability if your card is stolen. It also provides you with travel accident insurance and road assistance 24/7. If you wish to rebuild your credit score, you need the Orchard Bank Classic of Master Card.

They will report your performance to the major credit bureaus every single month. You will get your information updated daily for easy management. If you have online enrolment, they will send you emails reminding you about coming payment due dates. If you have any questions or concerns, they will assist you with their on-call customer service representatives. You will avoid many headaches and hassles because they will tell you whether your credit card is a secured one or not. Please make sure that you get a low APR all the time. The credit card that you choose must offer you this feature.

Best credit card deals , Final words

It is also important that you get unbiased data about the issuer of your credit card. You need to make sure that you are dealing with an honourable firm. The Consumer Reports ranks companies based on their quality service. You need to read this report to find out the truth behind the service of many financial institutions. They rate credit card firms based on their rewards and customer satisfaction. You will even know they fees they charge, customer support records and average interest rates they offer for every credit score range.

Banks in lending money

Admin JHS — Fri, 03 Feb 2012 13:22:41 +0000

One of the main roles of the bank is to lend money to its customers. Without lending money to the customers, banks would not be capable of creating credit. It is not enough for banks to collect deposits from its customers, but they also need to lend money to customers in order to create credit. The fundamental aim of any business is to make profits; therefore, a bank being a service industry business has to adhere to the principle of making profits. Hence, banks receive customers’ deposits and instead of keeping the money of the customer idle, they use the money in making profits. In order for the banks to make these profits, they have to lend money to the customers requiring these credits. Therefore, it is an important aspect of the bank to lend money.

However, banks do not just lend money to anyone. There are some rules and guidelines that they follow in lending money to individuals. In order for the banks to lend money to an individual, they have to verify that the individual that is seeking the credit is worth of credit. All banks have to look at the rating of individuals seeking a loan before they lend money. One of the requirements for applicants of bank loans is that an individual must have an account with the bank. Banks cannot lend money to a stranger. Having an account with the bank that one needs to take a loan with, makes the work of the bank easy in identifying the individual, and any relevant information can be obtained, for example, the bank can be able to obtain the credit history of the applicant by looking at his or her account. For some banks to lend money, they require collaterals while others do not. The advantage of holding collaterals by banks that lend money is that in case, the loan applicant fails to repay the loan, the banks can sell the collateral in order to cover up for the lend money. Lending is a risky transaction and so; banks have to hold collaterals before they lend money to any individual.

Banks lend money for both short and long duration. The time of the loan usually depends on the loan applicant. An applicant may require a long term or a short term loan depending on what he or she intends to do. The lend money may be for different purposes, which usually determine the amount to be applied for by the applicant. Banks also determine the period for which lend money is going to be repaid; that is; whether the lend money is for a short or a long period. Banks do not just lend money without assessing the advantages and disadvantages involved. However, they always focus on the advantages rather than the disadvantages for them to lend money. The advantages involved in lending money include high profitability from loan applicant who desires the bank to lend money in large amounts over a long period. Banks that lend money in large quantities for a long period earn higher profits than banks that lend money in small amounts for a short period.

Can I bend the rules of IR35?

Admin POK — Thu, 19 Jan 2012 16:44:15 +0000

With the subject of IR35 feeling like a grey area for most contractors, it is recommended that any contractors unsure of their IR35 status seek expert advice from either an accountant or most of the time recruiters will also be able to advise you on this topic, however it depends how uncertain you feel about your IR35 status.

To avoid your contract and working practices falling inside IR35 legislation, you will need to clearly show that the way you are working is that of a self employed contractor. HM Revenue and Customs clearly define what in their eyes classes as ‘passing IR35’; visit their website for more information, but as ever it is worth speaking to a specialist contractor accountant who will be able to simplify things for you and discuss this topic further.

Some contractor accountants also offer free verbal IR35 contract reviews which is quite handy. You can also ask for a full written formal review with a report outlining areas of weakness; however nobody can guarantee or insure you against IR35. You can buy IR35 insurance which will cover the accountancy and legal costs to defend your case but nobody guarantee you’ll be inside as it’s based on what HMRC decide.

You can fall inside IR35 legislations and still work as a contractor through your own Limited company there are still tax gains to be had working this way, and you will only pay tax on roughly 95% if your tax able income rather than the full 100%. Again talking to a specialist accountant means they will be able to advise you on your current contracting situation and advise you on the best way to contract which will maximise your take home pay.

IR35 is in essence quite simple but just having a cleverly written contract isn’t enough, you need to also make sure your working practices reflect your contract.

The Two Sides of Best 0 Credit Cards

Admin JHS — Tue, 10 Jan 2012 11:04:44 +0000

A lot of people are looking for ways to get the best 0 credit card offers. The premise of this type of credit card is very alluring. Who would not want to get credit cards wherein you are to pay the exact amount that you have borrowed without any interest? Well, this might seem to be the front of this credit card, but this is not necessarily the truth about it. You have to realize that this credit card is not really 0% interest by nature. You might find it in your bill that you do not have interest, but they have some other ways to get back the amount that they wanted for their business to grow.

This is through surcharges that you do not understand. They will also add up some other charges by placing names on it. You might even wonder if you have gotten such items. Well, if you are to sum up the total amount of the charges, you will end up with very high payment. It could even be higher than the regular credit card payments. Therefore, just before you close the deal with any credit card company, you have to first check the details of the credit card.

The good news here is that there are certain companies that are quite good in this aspect. They will really offer you 0% interest, but they will not add up so many charges that will make you be buried in debts. They have some other options so that they will also gain from you, but not give you a lot of burdens to take. These companies should be chosen in the end. However, just like any other credit card transaction that you will have, you need to read the small prints first before closing the deal. You might regret your decision at the end of the day.

Getting information over the web is a great start. In doing this, you can easily determine which of the options is perfect for you. You can also do inquiries to confirm what they have advertised. If you have some questions in regards to what you have read about the credit card policy, you can raise it via phone call. When you are certain of everything, it is the only time for you to close the deal. Unless you are certain of what they can offer you, try to look for some other options first.

There are many great companies online. However, you need to make sure that they are legally operating. You can also ask those who have tried getting this kind of credit card to confirm the truth in the advertisement of the said company. You can also check out their customer service to determine if they will provide you with good services along the way. It might take time before you make up your mind. Yet, there is nothing wrong with it. Take note that a lot of people have been burdened by credit card debts just because they made the wrong decisions.

Business Reward Credit Cards

Admin JHS — Wed, 21 Dec 2011 14:12:53 +0000

Do you have your own business? Whenever you have a business it can be a good idea to have a credit card in order to keep your business and personal charges separate. Of course you may have a business checking account too, but there are times when you need a credit card to make a purchase for your company given how expensive certain products can be for a business. When you need a credit card for your business purchases, it should be a reward credit card that will earn you a little something in return.

The following is designed to consider business reward credit cards. The information will look at the best ways to use these types of cards and some of the rewards you might be able to earn.

Business reward credit cards are either a point or cash back reward system. You may earn 1 to 5 per cent cash back or one point per pound. In certain circumstances like the introductory period you may earn double what the typical rewards are such as 2 points per pound for 3 months. You may earn more points for certain purchases too, like fuel purchases may earn you double points where restaurants may only offer one point. The type of reward card will specify the type of potential points or rewards you can earn. Cash back is just how it sounds. You earn a certain amount of cash back for purchases made. It accrues and eventually you are able to take the money out to apply it towards payment on the card or as money for a business purchase. Money can be sent back in the form of a gift card or cheque.

Business reward credit cards usually offer discounts or points on fuel, office supplies, travel, and restaurants. Some credit cards have partnered up with certain locations so that you get a discount or coupon for shopping at that location. It doesn’t happen often and you may not know when it will happen again, but these niceties do exist.

Business reward credit cards work in the same manner as most personal cards in that you have an interest rate to pay. To avoid paying interest you need to pay the balance off each month. In a business you may not be able to do that. If that is the case you can write off the interest on your taxes, though you may need to double check this statement. In recent years things have started changing with regards to taxes and credit card interest paid.

There are some rewards credit cards for businesses that do not charge interest; however, you have a higher than average annual fee. The annual fee for the card is what you pay for the privilege of using the card. If you do not pay interest along with the fee it can be a fairly decent deal, but a combination of the two can mean more expense for you and less “free” rewards.

Best UK Credit Cards

Admin JHS — Mon, 19 Dec 2011 11:40:06 +0000

Selecting the best UK credit cards for the financial conditions can be quite important. A substantial key to take, anybody searching to enrol in a brand new UK credit cards will need to take time, effort and choose to consider their options and think about the different product or service benefits they need to offer.

Beginning towards the top from the pile may be the Virgin card United kingdom clients should take very seriously. Coming with several weeks % balance transfer promotions and % on purchases, clients is going to be impressed using its 16.6% Typical APR. The Virgin card also has a host of extra supplies including discount rates on Virgin Holidays, Virgin Media along with other items, which makes it probably the most attractive cards available.

Similarly attractive among credit cards may be the Barclaycard Platinum which boasts % balance transfer promotions for several weeks (having a 2.9% fee), % on purchases along with a Typical APR of 16.9%. Additionally, it has a new rewards programme known as Barclaycard Freedom, which is advantageous to the customer.

The Halifax All-in-one offers 10 several week’s % balance transfer promotions (having a 3.00% admin fee) and purchases, that is bolstered by an very competitive Typical APR of 15.9%. The Annual Percentage Rate alone get this to a formidable contender one of the cards and it ought to be given due consideration by all customers.

The easiest method to get the best credit card deals would be to seek information. Compare the rates from various charge card companies to uncover the rates which will help you probably the most. UK credit cards rates will help you make the best choice, since you will find a variety of things to consider apart from rates of interest, for example costs along with other charges. It’s also wise to assess your requirements, and evaluate the way you intend to make use of the charge card. The very best charge card is the one which works best to your requirements as well as your investing habits.

To ensure that you are able to understand charge card rates better, you may also talk to your charge card agent or contact their customer support representative. They ought to have the ability to offer the all the details you’ll need. That will help you compare cards and rates , you will find also charge card comparison services available. Finding the right charge card deals might take time. However it will certainly be worthwhile, when you get the very best deals and also the best charge card rates. Take time to discover what UK credit cards deal is useful for you.

Clients can get an immediate decision around the MBNA Platinum and, whenever they be recognized, will enjoy several weeks % on balance transfer promotions (having a 2.90% admin fee), several weeks % on purchases and can take advantage of a 16.9% Typical APR.

Security is everything nowadays. The Halifax Plus card is among the couple of cards to include online fraud protection as standard. Matching this with several weeks % on balance transfer promotions (having a 3.00% admin fee), several weeks % on purchases and 16.9% Typical APR the Halifax Plus Card ought to be on every customer’s radar.

If you’re searching for a UK credit cards that will considerably strengthen your credit score, then your Capital One Classic is the greatest carrying out of all the cards. The credit card provides £1,500 investing energy in a Typical APR of 34.9%.

Not even close to thorough, this list will nonetheles

I searched on the Life Assurance Cover website and saved £15 a month

The WebClinic — Wed, 14 Dec 2011 14:52:55 +0000

It started off with me doing some searching around on the web for cheaper car insurance after my premium had gone up for the third year in a row, despite not making a claim. Once I realised just how easy it was to save myself some money, I set off checking all my premiums. Shopping around for insurance on the net is pretty easy these days. We have had critical illness cover for a number of years now and within a few minutes we had saved ourselves quite a bit of money after searching on life assurance cover. When you sit down and work out how much you can save each month it makes you wish you had done this a long time ago. If there’s one thing I will be doing going forward it is to make sure I do not just agree to renew all my policies every year, without checking if they are competitive in the market place. I have now decided to spread the word to all my friends and family about the money they could save themselves. Why throw away all your hard earned money if there is a better deal to be had elsewhere.

Source: http://lifeassurancecover.uk.com/blog/2011/12/14/i-searched-life-assurance-cover-website-and-saved-15-month/

We serve finance with our articles on credit cards, loans, debt and savings

IR35 Advice for Freelancers in the UK

Related posts

My Contract and IR35

Related posts

Making the Move from Umbrella to Limited

Related posts

Best Credit Card Deals You Can Get

Related posts

Banks in lending money

Related posts

Can I bend the rules of IR35?

Related posts

The Two Sides of Best 0 Credit Cards

Related posts

Business Reward Credit Cards

Related posts

Best UK Credit Cards

Related posts

I searched on the Life Assurance Cover website and saved £15 a month

Related posts