Following the April 2007 Budget announcements there are only two real options for Project Management contractors:
1. Operate through your own Limited company. It is very important to stress that these must be genuine, one person Limited Companies and not a ‘scheme’ dreamed up by what are nothing more than marketing organisations.
2. Work through a PAYE umbrella company and pay full income tax and full national insurance contributions on your entire earnings. For more details of umbrella companies, visit our sister company Parasol Group‘s website.
A large percentage of ‘employment services’ companies offering to set up Personal Service Companies or put you in a special ‘scheme’ are wide open to attack by HMRC under the new guidelines, and it is unlikely that the major agencies would deal with them. Remember, if they don’t have Accountancy in their name they probably aren’t Accountants.
Special update: SJD become the first and currently the only firm of accountants to have been reviewed and found to be fully compliant with all Managed Service Company (MSC) legislation by KPMG.
If you are thinking of contracting through your own limited company, please read our new straightforward guide on How to Contract through your own Limited Company. You’ll be surprised how little time it takes and just how easy it is.
Alternatively, if you are undecided about whether to go limited or whether to consider using an umbrella company – Take home pay through a limited or umbrella company – The differences.
You may also find the following pages useful:
- Why Become a Project Management Contractor?
- Becoming a Project Management Contractor
- Working as a Project Management Contractor
- Finding a Contract
If you have any question about contracting or would like any further advice please call our New Business Team on 01442 275789 or email email@example.com.