For the contractors that get taken on, however, a challenge exists. How best to save money and time in billing for work that is carried out?
When contracting, existing laws dictate that PAYE and NIC contributions are deducted in full, prior to direct payment. Agencies and clients thus require full invoicing for work carried out and this can only come as valid from a limited company.
This creates more heavy administrational work for contractors that run themselves as limited companies, and whose time is already precious, as well as creating issues for contractors who have not set-up their business practices as fully.
We asked whether setting up under an ‘umbrella’ company could help contractors to maximise these new business opportunities.
HR Aspects Magazine spoke with Mike Keeling, who is Senior Business Development Manager at Paymatters, a company that helps contractors manage their payroll and taxation issues.
He commented: ‘Undoubtedly contractors benefit at the outset in commanding higher hourly rates than other fixed contract employees. However, many seem unaware that managing their business can prove unwieldy without expert advice from accountants and legal professionals”.
Mike continued: “Paymatters offers, under one roof, a comprehensive Umbrella, Accountancy and CIS payroll service that eases tax and administrational worries. This service offers clear expensing advice so contractors are paid in full what they are owed, as well as providing a tried and tested invoicing and payment collection system that can rapidly improve cash flow.
He added: “Using the Umbrella service at Paymatters can save valuable time and effort, as well as easing the burden on over-worked contractors”.PayMatters can be contacted on 01625 546610 or via email@example.com