April 2007 brought into effect the new changes to the tax regulations that will have a major impact on the way contractors can be paid in the UK. Whilst this will bring with it hardships for many contractors, especially those within IR35, for those that fall outside out of the Governments IR35 regulations there is still hope. As a self employed contractor you owe it to yourself to find the best way of maximising your income whilst still satisfying HMRC.
Personally I find it hard to understand the UK governments stance on cracking down on people who choose to work independently. It is these independent IT contractors that naturally go on to form their own companies, bringing with them employment and a significant long term positive impact on the economy. However, there are also those contractors who are barely getting by, no holiday pay, no sick-pay, no employer pension, in short none of the benefits associated with employment and yet the UK Government wants to treat these contractors as employees. OF course when ceasing paid employment you accept a number of risks, it would however be nice if the playing field was level.
If you are an independent IT contractor then it is your responsibility to check how each contract you accept falls with regard to the IR35 regulations. If you fall outside of IR35 then it is still possible to keep up to 85% of your gross income whilst working within HMRC regulations. If you are looking for advice with regard to your status as an IT Contractor and how to best maximise your income then I’d recommend checking out this page best UK IT contractor payroll and maybe use the contact form. They are a small offshore company offering various HMRC compliant payroll and invoicing services to UK based IT (or any independent) contractors. More importantly and the main reason why I personally recommend them is that they have never had any of their contractors investigated for tax avoidance through using their services, giving you peace of mind whilst allowing you to retain more of your income.