You may not have heard too much about this option, in spite of it being one of the oldest methods available to people running their own businesses. Typically in the contractor market, people opt for either limited company (PSC) or an umbrella company. But there is a third choice: you can register with HMRC as a self-employed person, and receive your income gross. You pay your taxes at the end of the tax year, and some in account of your next trading year. With Green Lantern Contracting Ltd working with you step by step, we’ll make sure that if this is the option for you, it’s as easy as possible.
The sole trader option is good for anyone who wants increased cash-flow, and who is good at keeping money aside to be paid at the end of the year, especially if your permanent workplace is your home. There is also an option for people to register under the HMRC Flat Rate VAT scheme for the self-employed, which adds income directly back into your profits.
Essentially, as and when you work, you receive all of your funds in one go. You must be registered with HMRC, and we can help you do all of the necessary. In addition to the obvious benefits of receiving your funds up front, self-employed people are able to offset their expenditure for a wide range of expenses relating to running your own business (don’t worry, we’ll give you all the information you need for this).
Self-employed people also make considerable National Insurance savings, especially when compared with an Umbrella Company (you’re often up to 15% better off). Finally, depending on your individual circumstances, as a self-employed person you may be able to benefit from VAT savings too. If you want to see how much better off you can be, we can give you a personal illustration.
