April 16, 2012, Author: , Leave a comment

Keep Your Taxes Organised

Categories: Finance
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Freelancers have three options when considering how to deal with tax affairs, form a limited company, use an umbrella company or pay tax through an agency.

PAYE through an agency is the worst option as the full amount of tax and NI will be paid on all earnings and valid business expenses cannot be claimed.

Setting up a limited company is easy and it has many advantages including higher take-home pay, the ability to claim on a wider range of expenses, complete control of the business and greater opportunities for tax planning. However, limited companies also have their disadvantages. There will always be a lot of paperwork; accounts will need to be filed each year and a limited company can be costly if an individual is only contracting for a limited period of time. Limited companies are generally not ideal for contracts worth less than £25,000. A limited company involves some or all of the following; company end-of-year accounts, corporation tax returns, VAT returns, personal tax returns, payroll administration, dividend administration, annual returns and dealing with Inland Revenue and Companies House.

With a limited company a freelancer can either complete their own tax returns that would require some commitment and investment of time, or employ an accountant or bookkeeper. Either way it is important to remember that the freelancer is ultimately responsible for their tax returns and failure to comply with all the regulations can lead to a hefty fine. Always assume that you will at some point be investigated by HMRC.

Those that are new to freelancing should invest some time in organising their tax information. The Inland Revenue’s website has some useful information on tax laws. Many firms of accountants publish good guides to tax and the British Taxpayers Federation, Federation of Small Businesses and the government’s Business Link are all useful sources of information. Taxes should not be left until the last minute; keep records in order, and if possible try to record time in the format expected on the Self Assessment Tax Return. There are many professionals that can offer tax advice including chartered accountants, solicitors and chartered tax advisers, but always ensure that they are registered with the appropriate professional body.

There are a number of software packages and online systems that can be used. An accountant can help with advice on which package to choose, but some online options are KashFlow, Blinksale, FreeAgent Central and Crunch. Software package for PCs or MACs include SAGE (PC only), QuickBooks (PC only) and MYOB (PC and Mac).

Some freelancers choose to use an umbrella company. An umbrella company will remove many of the administrative duties normally associated with running a company. The umbrella company will issue invoices, collect payments, calculate NI and tax contributions and pay the contractor’s net pay into their bank account. Umbrella companies are easy to use and are suitable for those with short and long contracts and who want minimum input or those who are contracting between jobs. In the past umbrella companies were more expensive than limited companies because of all the administration involved and they did not offer the same tax advantages. However, the introduction of IR35 has reduced the tax disadvantages and with the emergence of new internet umbrella companies they have become more attractive.

March 5, 2012, Author: , Leave a comment

Mis Sold PPI Claims On The Increase

Categories: Insurance
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A recent report by the Office of National Statistics has suggested that disposable household incomes for the average family in the UK, fell by 1.2pc in 2011, and they predict that things aren’t going to improve anytime soon.

With high unemployment rates, freezes on salaries, and the rising cost of living, people would normally turn to their banks for a loan or credit card. However, with the banks tightening up their lending criteria, and the recent banking scandals, many people don’t know which way to turn. If you’ve found yourself in a similar situation, then there is a way to get some money from the banks – submit a claim for mis sold PPI.

ppi claims

For those of you who don’t know what PPI is, let me explain… PPI or payment protection insurance, as it is also known, is a type of insurance policy which was sold alongside loans, mortgages, credit cards and anything else the banks could attach it to. They’d convince people, just like you, to purchase the insurance to cover the minimum repayments in the event that you are unable to do so if the worst happens and you lose your job or are unable to work due to an accident or illness.

Sounds fair right? Well, it wasn’t, because they began selling it to people who weren’t eligible to claim or had existing cover in place and even to those who did not want or need it. On many instances they added it without the borrowers knowledge!

What this could mean for you is that you could be owed thousand’s of pounds in PPI compensation. Yes, that’s right, £THOUSAND’S!! If you are one of those people who were mis sold PPI.

For more information about reclaiming your money, speak to a PPI claims specialist at the PPI Claims Company.

March 1, 2012, Author: , Leave a comment

Staying Protected When Using Your Credit Card

Categories: Credit Cards
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When selecting and using a credit card, a bit of consumer advice can come in handy. This article includes many helpful suggestions for using credit and insights into the credit industry. The problem with most is that they have credit cards and lack the knowledge to use them prudently. Debt is the end result of this issue.

Never give the number of your credit card out when you receive a telephone call asking you for it. This is something most scammers do. If you must use your credit card over the telephone, only do so with companies you know you can trust. People who contact you cannot be trusted with your numbers. You never know who is really on the other end of that line.


Be cautious of cards that declare an interest rate of zero percent. Even thought that looks great initially, that often encourages consumers to keep spending and to overspend. After your grace period is over, your interest rates will go up and you could end up paying a lot more than you initially thought.

Use any credit cards that you don’t wish to lose. Many creditors close accounts that remain inactive for too long. One way to prevent this problem is to make a purchase with your most desirable credit cards on a regular basis. Remember to pay them off in full each month to avoid accumulating debt.

Bring two credit cards when you travel, especially overseas. If you want to have multiple financial options, it’s important to have cards from different banks available to you. That helps in times of problems with one of the cards. If you have cards from different banks, accessing your credit is much more likely.

Do not close any credit card accounts without finding out how it affects your credit report. Depending on the situation, closing a credit card account might leave a negative mark on your credit history, something you should avoid at all costs. For the oldest cards that make up a big chunk of your credit score, it is worth trying to keep them open.

Watch your credit balance cautiously. Know the credit limit of that card. If you exceed your limit, then the fees are going to add up making your balance a lot harder to pay off. It will take forever to pay down your balance if you continue to go over your card’s limit.

As previously discussed, it is extremely easy to get in over your head when you utilize credit cards. All it takes is too many cards and/or too many costly purchases, and you will find yourself in hot water. This article should prepare you for avoiding these types of situations.