CONTRACTING
JPC FINANCIAL LIMITED
FINANCIAL LIMITED
THE COMPLETE BUSINESS MANAGEMENT SERVICE
CONTENTS
PROS
  1. Higher Income.
    Due to the short term nature of the work, employers are prepared to pay substantially higher rates to contractors than to employees. The employer benefits through savings in holiday pay, sick pay, redundancy, employer’s National Insurance etc., and does not suffer from the administrative headaches of the PAYE system.
  2. Variety.
    The freedom to move between jobs without the formality of notice and without associated blemishes in career history.
  3. Independence.
    The satisfaction of a feeling of "self employment".
  4. Holidays.
    Not being fixed to set annual holidays. Having freedom to take extended holidays between contracts.
  5. Travel.
    Experienced contractors are marketable in a variety of locations, both at home and overseas.
  6. Tax Savings.
    Possibility of organised tax planning through running your own business.
  7. With tax not being deducted at source from your income, you can earn extra interest income on deposited funds.
  8. Certain expenses will be tax-deducted as long as they can be demonstrated to have been incurred wholly, exclusively and necessarily in the pursuit of business.
CONS
  1. Administration:
    Keeping records and maintaining a bookkeeping system is required by law, and the Inland Revenue will insist on tax records being up-to-date for all types of business.
  2. Professional Advisers:
    It will in all cases be necessary to appoint an accountant and financial advisor, who will inevitably charge you for their services!
  3. Self-Control:
    Ensuring you have enough money to pay tax when it falls due.
  4. Compliance:
    Legislation laid down by the Inland Revenue, Customs and Excise and the Registrar of Companies can be oppressive. As these authorities become increasingly computerized, so interest and penalties will be incurred by businesses which fail to comply with deadlines.
  5. Holiday Pay:
    You receive no remuneration for holiday periods.
  6. Sick Pay:
    You receive no remuneration when absent from work through illness, although this can normally be offset by a good Permanent Health Insurance policy.
  7. Security:
    You are not protected by current legislation offering certain rights to employees.
  8. With IR35 taking effect from 6th April 2000 it is imperative that a contractor takes good advice as to financial structures from the outset.