Self-employed, long-term contractors are in high demand in the United Kingdom in several high paying industries. Contracts of one, two, and five year duration are common in fields such as aviation and maritime, banking and finance, and engineering and design, among others. Contracts are competitive, but those who get them can earn well over fifteen pounds per hour. Contractors are their own boss, they have flexibility and freedom, and they can move around to where jobs and opportunities take them. High earning contractors are usually experts in their field, but they do need help when it comes to navigating the taxes, reporting, and payroll aspects of contract work.
They can manage the duties of the contracts, they cannot always manage the particulars of the finances. There are umbrella companies in uk that promise high percentages of take home pay to contractors, and take care of the rest. The problem with using an umbrella company uk is that they are not tax efficient for mid-to-high level earners. Tax avoidance schemes have occurred in some umbrella companies in uk, and that leaves the contractor responsible for paying stiff penalties. Accounting firms can handle the finances, but do not provide additional services to help contractors navigate the job markets in their fields. UK Contract Partners is a company that helps contractors set up limited companies, manage finances, and succeed in their chosen fields.
Services include limited company set-up, limited company management, help with setting up a business account at a bank, help applying for a flat VAT, email alerts regarding contracts available in a specific filed, tips on negotiating a high contract rate, and guidance on tax rules. Knowing the rules of IR35, for example, can help a contractor word each contract in a way that clearly indicates that contractor is self-employed. The company can offer specialized services because it deals exclusively with high earning contractors. Another service is helping contractors secure a mortgage. Traditionally, contractors have not been able to qualify for mortgages because wages are determined to be unsteady.
This company can refer contractors to lenders that will take past employment into consideration. Some lenders are willing to consider precious employment, work experience, and contracting ir35 contract history to help contractors qualify for a mortgage. Contractors with fixed-term contracts for a minimum of two years, are more likely to get a mortgage than contractors with no minimum contracts. New contractors may qualify if there is six months remaining on a current contract, and there is a two year history in the same line of work. Examples of this type of service, is what makes it efficient for a contractor to set up a limited company to manage finances.